Yes Bank will request the Reserve Bank of India (RBI) to extend Rana Kapoor’s term as the CEO up to September 30, 2019, considering the challenges in finding a successor within a short period and to complete the annual general meeting (AGM) process in his presence.

At its board meeting on September 25, the bank also decided to request for a minimum extension for Kapoor up to April 30, 2019, for finalisation of audited financial statements.

“The board decided that given the role of Rana Kapoor as MD and CEO in the bank since inception of the bank in 2004, and the time consuming challenges of finding a suitable successor, that the incumbent MD and CEO be given further time in his current position beyond January 31, 2019…” the bank said in a filing to the stock exchanges.

"This period will also be crucial to identify and enable a new incumbent to get fully conversant with Yes Bank and its working," the bank said in the statement.

For now, the bank has formed a search and selection committee to identify a successor to Kapoor.

Appoint two Executive Directors

In addition, the bank also decided to appoint Rajat Monga (currently Senior Group President), and Pralay Mondal (currently Senior Group President) as executive directors in the bank to ensure a long term succession plan. Their appointment will also be subject to RBI approval.

Term cut short

Kapoor’s term as the Chief Executive Officer and Managing Director (CEO and MD) ends on January 31, 2019, after the banking regulator cut short his reappointment from three years to five months.

Although the RBI has refrained from giving any reasons, the action was likely due to under-reporting of non-performing assets (NPAs) by the bank for two consecutive years (FY16 and FY17).