 "RBI approves reappointment of Rana Kapoor as MD & CEO of YES Bank for 3 years")
Private sector lender YES Bank has informed the exchanges that the Reserve Bank of India (RBI) has approved the reappointment of Rana Kapoor as its managing director and chief executive officer for a period of three years.
In June, the shareholders had also approved Kapoor's reappointment. The reappointment will come into effect from September 1, 2015. Prior to this, Kapoor had got a three-year extension in September 1, 2012, which was scheduled to end on August 31, 2015.
This is the fourth extension that Kapoor has received ever since the bank's inception in 2004.
Kapoor is also the largest shareholder in the bank and holds 11.76 per cent of the entire shareholding. He is also caught up in a legal battle with Madhu Kapur, who is the second-largest shareholder in the bank, holding 10.28 per cent share in the bank.
Kapur's husband, Ashok Kapur had co-founded YES Bank with his brother-in-law Rana Kapoor. Madhu Kapur and Rana Kapoor's wife Bindu are sisters. Kapur had moved court, claiming her right as the bank's co-promoter was violated and she wasn't consulted before the bank had appointed a few directors on its board.
In the annual general meeting, apart from approving Kapoor's appointment, shareholders had also approved the bank's plan to raise $1 billion (Rs 6,500 crore) by fresh equity and Rs 10,000 crore through non-convertible debentures and bonds. The lender had said it was aiming to raise the money to grow into a "meaningful large bank by 2020".
Apart from this, the borrowing limits of the bank have also been increased from Rs 30,000 crore to Rs 50,000 crore. The bank also got shareholders' approval to increase foreign portfolio investors' and foreign institutional investors' limits to 74 per cent of the paid-up capital and for a dividend payout of 90 per cent (Rs 9 a share).
The bank's shares rose eight per cent on the BSE on Tuesday and closed at Rs 679.95.
In June, the shareholders had also approved Kapoor's reappointment. The reappointment will come into effect from September 1, 2015. Prior to this, Kapoor had got a three-year extension in September 1, 2012, which was scheduled to end on August 31, 2015.
This is the fourth extension that Kapoor has received ever since the bank's inception in 2004.
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Kapoor will turn 58 this September and has been heading the bank since its inception 11 years ago. Last September, RBI had raised the age limit of private bank chiefs to 70, paving the way for private bank chiefs to serve a longer term.
Kapoor is also the largest shareholder in the bank and holds 11.76 per cent of the entire shareholding. He is also caught up in a legal battle with Madhu Kapur, who is the second-largest shareholder in the bank, holding 10.28 per cent share in the bank.
Kapur's husband, Ashok Kapur had co-founded YES Bank with his brother-in-law Rana Kapoor. Madhu Kapur and Rana Kapoor's wife Bindu are sisters. Kapur had moved court, claiming her right as the bank's co-promoter was violated and she wasn't consulted before the bank had appointed a few directors on its board.
In the annual general meeting, apart from approving Kapoor's appointment, shareholders had also approved the bank's plan to raise $1 billion (Rs 6,500 crore) by fresh equity and Rs 10,000 crore through non-convertible debentures and bonds. The lender had said it was aiming to raise the money to grow into a "meaningful large bank by 2020".
Apart from this, the borrowing limits of the bank have also been increased from Rs 30,000 crore to Rs 50,000 crore. The bank also got shareholders' approval to increase foreign portfolio investors' and foreign institutional investors' limits to 74 per cent of the paid-up capital and for a dividend payout of 90 per cent (Rs 9 a share).
The bank's shares rose eight per cent on the BSE on Tuesday and closed at Rs 679.95.