Published 16:56 IST, March 20th 2020
RBI appoints two Additional Directors to Yes Bank board; tenure commences on March 26
On Friday, the RBI appointed former RBI Deputy Governor R Gandhi and Associate Professor Ananth Narayan Gopalakrishnan as the additional directors of Yes Bank.
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The Reserve Bank of India on Friday appointed former RBI Deputy Governor R Gandhi and Associate Professor Ananth Narayan Gopalakrishnan as the Additional Directors of Yes Bank. This decision was taken in the exercise of powers under the ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ and the Banking Regulation Act, 1949. They will have a tenure of two years with effect from March 26.
Reserve Bank of India:RBI today appointed R Gandhi (former Dy Governor,Reserve Bank of India)& Ananth Narayan Gopalakrishnan (Associate Professor,S P Jain Institute of Management&Research) as Additional Directors on board of #YesBank with effect from March 26 for period of 2 yrs. pic.twitter.com/tmIsthVBxW
— ANI (@ANI) March 20, 2020
Yes Bank services operational
The current appointments come a few days after Yes Bank approved the reconstitution of its board with RBI-appointed administrator Prashant Kumar as the new CEO and Managing Director. Also, Sunil Mehta was appointed as the non-executive chairman while Atul Bheda and Mahesh Krishnamurthy will serve as non-executive directors of Yes Bank. Meanwhile, the full banking services of Yes Bank became operational on Wednesday from 6 pm nearly two weeks after the RBI imposed a moratorium. In a tweet, Yes Bank confirmed the development. It thanked the customers for their patience and cooperation.
Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation. #YESforYOU @RBI @FinMinIndia
— YES BANK (@YESBANK) March 18, 2020
Yes Bank reconstruction scheme
On March 5, the RBI imposed a moratorium on Yes Bank, superseding its Board of Directors. The RBI cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of the reasons for taking action. A day later, the RBI unveiled a draft reconstruction scheme of Yes Bank in the public domain.
On March 13, the Union Cabinet approved the reconstruction scheme of Yes Bank as proposed by RBI. The SBI has declared that it would purchase 725 crore shares of Yes Bank at Rs. 10 per share subject to regulatory approvals. As per reports, other lenders including ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and individuals like Radhakrishna Damani, Rakesh Jhunjhunwala and Azim Premji Trust have joined SBI in investing in Yes Bank.
16:56 IST, March 20th 2020