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Reserve Bank appoints additional directors on the board of Yes Bank Ltd
The Reserve Bank of India on Friday appointed R Gandhi, former RBI Deputy Governor,
The Reserve Bank of India on Friday appointed R Gandhi, former RBI Deputy Governor, and Ananth Narayan Gopalakrishnan, Associate Professor, S P Jain Institute of Management and Research, as additional directors on the board of Yes Bank Limited with effect from March 26, 2020, for two years.
The Reserve Bank in its notification said, "In terms of paragraph 5 (3) of the 'Yes Bank Ltd. Reconstruction Scheme, 2020' notified by Government of India on March 13, 2020, and in the exercise of powers conferred to it under subsection (1) of section 36 AB of the Banking Regulation Act, 1949, Reserve Bank has today appointed Shri R Gandhi (former Deputy Governor, Reserve Bank of India) and Shri Ananth Narayan Gopalakrishnan (Associate Professor, S P Jain Institute of Management and Research) as additional directors on the board of Yes Bank Limited, w.e.f. March 26, 2020, for a period of two years."
Yes Bank's reconstruction scheme
As per the Yes Bank's reconstruction scheme, the RBI can appoint one or more persons as additional directors on the bank's board.
The 'Yes Bank Reconstruction Scheme, 2020' was notified by the union government on March 13, 2020, which was followed by the imposition of a moratorium on Yes Bank by the central government on March 5, 2020, to boost the bank's liquidity. Initially slated to continue till April 3, 2020, the moratorium on the private lender was lifted in 13 days, on March 18, 2020, at 6 pm.
As per the reconstruction scheme, Yes bank will receive an equity infusion of Rs 10,000 crore by 8 entities, mainly banks led by State Bank of India (SBI), which has contributed over 60 per cent (Rs 6,050 crore) of the equity infusion of Rs 10,000 crore, thereby making it the single largest stakeholder in Yes Bank with a shareholding of 48.21 per cent.
Earlier this month, the RBI appointed Prashant Kumar as the CEO and MD of the reconstructed Yes Bank. Kumar, who was earlier the CFO and Deputy MD at State Bank of India (SBI), was appointed as administrator to the troubled lender by RBI.
Besides, Sunil Mehta, former non-executive chairman of Punjab National Bank, was appointed Non-Executive Chairman of Yes Bank, while Mahesh Krishnamurthy and Atul Bheda were appointed Non-Executive Directors to its board.
