Left Menu
Development News Edition

Yes Bank welcomes ex-RBI deputy governor on board, calls it constructive measure

Devdiscourse News Desk | Mumbai | Updated: 17-05-2019 20:34 IST | Created: 17-05-2019 14:21 IST
Yes Bank welcomes ex-RBI deputy governor on board, calls it constructive measure
It can be noted that there are very few precedents of such action by RBI in the private sector bank space and none in the new-age private sector banks.

Yes Bank Friday said the appointment of former RBI Deputy Governor R Gandhi as an additional director on its board is a positive move which will not impede smooth functioning at the private sector lender. Welcoming the appointment in a statement, the city-headquartered bank said the appointment is "very positive and constructive measure" to strengthen the board.

It added the Reserve Bank of India (RBI) is supportive of a "strong and successful" Yes Bank. It can be noted that there are very few precedents of such action by RBI in the private sector bank space and none in the new-age private sector banks.

The Yes Bank scrip took a beating since the appointment of Gandhi but was trading 0.40 per cent up at Rs 138.35 a piece at 1310 hrs Friday. "We warmly welcome the appointment of R Gandhi to the Board of Yes Bank by RBI under Section 36AB of the Banking Regulation Act, 1949. This is a very positive and constructive measure aimed at further strengthening the Board," a bank statement said.

"This will not impede the smooth, independent and effective functioning of the Bank in any way," it said. The RBI had cut short the term of the lender's promoter-chief executive Rana Kapoor on concerns over governance. The RBI action had come after two consecutive years of the bank having been found of under-reporting its stock of NPAs.

The bank hired former Deutsche Bank India head Ranveer Gill to replace Kapoor. In the first quarter under Gill, it reported a maiden loss of Rs 1,506 crore. Gill had said the bank expects significant losses on its exposure to low-rated borrowers and made provisions for the same, resulting in the loss. Analysts had also welcomed the appointment of Gandhi, saying this signifies that the RBI is working in tandem with the bank's new management.


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Videos

Latest News

UN appeals for restraint, ‘social cohesion’ as protests across the US continue

Responding to on-going protests that have spawned violence on all sides across dozens of US cities, the UN Spokesperson on Monday reiterated the Secretary-Generals appeal for grievances to be heard in peaceful ways, met with restraint by po...

Trump, Illinois governor spar during call over get-tough talk

A conversation during which President Donald Trump urged U.S. state governors to crack down on nationwide protests became testy on Monday when Illinois governor J.B. Pritzker accused Trump of making the situation worse. Trump, who last week...

WHO to support DR Congo as Ebola resurfaces in the northwest

The World Health Organization WHO will assist the Democratic Republic of the Congo DRC as it confronts a new Ebola outbreak in the northwest amid the novel coronavirus pandemic and other challenges, agency chief Tedros Adhanom Ghebreyesus s...

Japan allows saliva-based coronavirus tests

The Japanese Health Ministry said on Tuesday it now allow saliva-based coronavirus tests, to help boost the number of polymerase chain reaction PCR tests.Currently, nasal swabs are mainly used for tests in Japan, and sneezes at the time of ...

Give Feedback