YES Bank appoints new chairperson

YES Bank on Thursday agreed not to make any changes in the composition of its board till the hearing on the petition filed by Madhu Kapur questioning the appointment of six directors is going on in the Bombay High Court. This comes after the court expressed displeasure over the appointment of retired Indian Administrative Service officer Radha Singh as the non-executive chairperson.

Singh was earlier an independent director on the bank’s board and is currently also the chair of the newly constituted corporate social responsibility board sub-committee. She has been associated with the bank since April 2008.

YES Bank has given an assurance that it will not make any changes and in turn asked the court not to pass an order regarding the same or put it on record.

The counsel of Madhu Kapur, widow of the bank's promoter and co-founder Ashok Kapur, questioned the appointment. Kapur is the second-largest shareholder who has taken YES Bank to court claiming her right as the bank’s co-promoter was violated.

YES Bank in a statement said, “The Senior Counsels representing YES Bank informed the court that it is a statutory requirement for a banking company to have a chairman, in terms of Section 10B (1A)(i) of the Banking Regulation Act, 1949. Radha Singh’s appointment was approved by the Reserve Bank of India for two years as Non-Executive Chairperson of the Bank.”

Singh has taken over from M R Srinivasan whose term got over at the end of June this year. He continues to be on the bank’s board as an independent director.

Currently, Rana Kapoor, managing director and CEO of YES Bank, and Madhu Kapur are involved in a courtroom battle over her promoter status of Kapur. Rana Kapoor holds 11.86 per cent stake in the bank whereas Madhu Kapur and her company own 10.36 per cent.

Yes Bank