INSUBCONTINENT EXCLUSIVE:
RBI trimmed Rana Kapoor's term despite shareholders giving a nod to extend it for three more years.Yes Bank Ltd on Wednesday said the
Reserve Bank of India had reaffirmed that the retail bank should appoint a successor to Chief Executive Rana Kapoor by February 1, 2019
Last month, the central bank said Kapoor could only stay in his job until January 31 without specifying a reason, even though Yes Bank's
shareholders' had agreed to extend his term for three years
The lender's shares had dropped about thirty percent on the news
Yes Bank then asked for central bank approval to extend Kapoor's term beyond January to allow more time to find a replacement.But the
central bank has stuck with its deadline for a new CEO.The Reserve Bank's action highlights its increasingly proactive approach to
tackling the problems in India's banking sector caused mainly by bad debts.Kapoor, viewed as a charismatic business leader and one of
India's most prominent bankers, co-founded Yes Bank in 2004 and has been instrumental in creating the country's fifth largest private
sector bank by assets.But Yes Bank's rapid expansion came at a cost of rising bad loans - a problem plaguing the Indian banking
industry.The bank has hired advisory firm Korn Ferry to help to search for Kapoor's successor.The bank aims to complete the recruitment
process by mid-December, Yes Bank said in a statement after markets closed on Wednesday
