YES Bank has named Ravneet Singh Gill as its new MD and CEO. He succeeds Rana Kapoor whose term comes to an end on 31st January 2019.
- Along with his Sister-in-law, Bindu Kapoor Rana Kapoor was asked by RBI to leave the post by January end this year.
- Before 1st March 2019, the new CEO can join as per approval received from Reserve Bank of India.
- Ravneet Singh Gill is currently serving as the MD and CEO of Deutsche Bank India.
- The interim transition will be finalized by the Bank’s board when it meets on January 29, 2019.
- Though RBI had not specified any particular reason for asking Rana Kapoor to leave the chair, it is learnt that for the last two years, under his regime, the bank had underreported its NPA figures.
- For two consecutive fiscals, the bank had underreported its NPA figures by a cumulative Rs. 10,000 crore each year, along with its larger rival Axis Bank.
- RBI had initiated similar action against the CEO of Axis Bank Shikha Sharma who left the chair by last month end.
- Though YES Bank had requested RBI to permit Rana Kapoor to continue till March end this year, the same was rejected by RBI.
- For IRDAI chairman T.S Vijayan was appointed by the bank to look for a successor to Kapoor.
- The Search panel also faced some members of the panel leaving which included the former bureaucrat and bank’s non-executive Chairman Ashok Chawla and O.P. Bhatt, former SBI Chairman.
Note: After the RBI move the bank’s shares had lost more than two-thirds of its value, and immediately after the appointment of the new CEO, the bank shares shot up by 14.5%.