Yes Bank on Monday announced the reconstitution of its board of directors, and appoints Prashant Kumar, former CFO and Deputy MD of SBI, as new CEO & MD of Yes Bank.
- Sunil Mehta, former non-executive chairman of Punjab National Bank, appointed a non-executive chairman.
- Mahesh Krishnamurthy and Atul Bheda appointed non-executive directors.
“The reconstitution of the board of directors of the Bank as set out shall take effect immediately after the expiry of seven calendar days from the date of cessation of the moratorium in accordance with paragraph 11 of the Scheme,” Yes Bank said in a regulatory filing undersigned by the bank’s administrator Kumar.
All members of the board, except additional directors, will be appointed for a period of one year or until an alternate board is reconstituted. “Any defect in the constitution or any vacancy in the board shall not invalidate any meetings conducted by the board,” the statement said. It also added that investor bank and other investors would be treated as “public shareholders” of the reconstituted bank for five years from the date of allotment of shares.
Yes Bank on March 5 was put under moratorium by RBI due to serious financial mismanagement under its former MD & CEO Rana Kapoor, who currently is in the custody of probe agencies, as well as failure to raise enough capital to keep afloat.
YES Bank, in its December quarter result released on Saturday, reported worst ever loss of Rs 18,564 crore due to provisions and contingencies of Rs 24,567 crore. The bank reported a profit of Rs 1,001 crore in Q3 FY19.
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