RBI says Rana Kapoor can't be Yes Bank's MD after February 1; shares crash

The Reserve Bank has refused to give an extension to Yes Bank MD and CEO Rana Kapoor and asked the bank to appoint a new chief by February 1, 2019, the private lender said Wednesday.

The Yes Bank board had sought at least a three-month extension for Kapoor from the RBI beyond January 31, 2019.

"The Reserve Bank of India has reaffirmed that a successor to Shri Rana Kapoor, MD & CEO, YES Bank should be appointed by February 1, 2019," the lender said in a stock exchange filing.

The RBI had earlier curtailed the three-year term that the board had sought for Kapoor, also one of the promoters of the bank, to January 31, 2019, and asked the bank to find a replacement.

Yes Bank shares dropped 6.85 per cent to close at Rs 231.75 apiece on BSE.