Yes Bank boss gets fresh term

Mumbai, Aug. 25: The RBI has approved an extension of the term of Rana Kapoor as the managing director and chief executive officer of Yes Bank for three years.

"Pursuant to approval of the board of directors and the approval of shareholders at the 11th annual general meeting (AGM) held on June 6, Yes Bank has received approval from the RBI for the re-appointment of Rana Kapoor as MD & CEO for a period of three years," the bank said in a statement.

Kapoor, 57, is also the founder of the bank. His fresh term starts next month.

Last year, the central bank had announced an age limit of 70 for the managing directors and chief executives of private banks.

The shares of Yes Bank, which had recently come under pressure, today rallied 8.08 per cent, or Rs 50.85, to finish at Rs 679.95 on the Bombay Stock Exchange.

Before setting up Yes Bank, Kapoor was the chief executive and managing director and main managing partner of Rabo India Finance (RIF). He led RIF as a foreign joint venture financial services organisation in partnership with Rabobank in India. He later sold his stake to Rabobank in early 2003.

Between 1996 and 1998, Kapoor was the general manager and country head of ANZ Grindlays' Investment Bank. He spent 15 years at Bank of America, where he held several positions, including assignments in Asian countries, and ended his stint as the head of the wholesale banking business.

Kapoor is engaged in a bitter battle of control of the bank with his sister-in-law Madhu Kapur.

Yes Bank has recently raised Rs 315 crore through the issue of green infrastructure bonds to International Finance Corporation (IFC), Washington, on a private placement basis. This was the first investment by IFC in an emerging market green bond.

The lender said it would use the proceeds from the issue to finance green infrastructure projects in the renewable energy segment.

During the first quarter ended June, the bank's total advances grew 35 per cent to Rs 79,666 crore, while deposits rose 25 per cent to Rs 95,316 crore.

Corporate banking accounted for nearly 68 per cent of the advances portfolio, while retail banking constituted 32 per cent.

Yes Bank