As the shares of Yes Bank continue to decline, the Board of Directors have sought an extension of incumbent founder and CEO Rana Kapoor's term in office.
The Board, following its meeting on Tuesday, announced the constitution of a "Search and Selection Committee", comprising three existing nomination and remuneration committee board members and two external experts to identify a new Managing Director and CEO as a successor to Kapoor, in accordance with the Reserve Bank of India's communication directing the Board to replace Kapoor post January next year.
The Board also informed that given Kapoor's role as MD and CEO since the inception of the Bank in 2004, and the time-consuming challenges of finding a suitable successor, it would request the RBI for an extension of his term up to at least April 30, 2019, for finalisation of audited financial statements for the fiscal year ending March, 2019, and thereafter, subject to RBI's approval, up to September 30, for the statutory AGM process to be completed.
"This period will also be crucial to identify and enable a new incumbent to get fully conversant with Yes Bank and its working," the Board argued.
During the meeting, the Board, in order to ensure a long-term succession plan within Yes Bank, sought the RBI's approval for the appointment of Rajat Monga (currently Senior Group President), and Pralay Mondal (currently Senior Group President) as Executive Directors of the private lender.
"The Bank would make appropriate recommendations to RBI regarding the appointments," the Board said.
Last week, the central bank had announced that Kapoor would serve as MD and CEO of Yes Bank only until January 31 next year, three months after the bank's shareholders had given their nod to Kapoor's reappointment for another three-year term.
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