RBI appoints two Additional Directors to Yes Bank board; tenure commences on March 26

The Reserve Bank of India on Friday appointed former RBI Deputy Governor R Gandhi and Associate Professor Ananth Narayan Gopalakrishnan as the Additional Directors of Yes Bank. This decision was taken in the exercise of powers under the ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ and the Banking Regulation Act, 1949. They will have a tenure of two years with effect from March 26. 

Read: BIG: Yes Bank Resumes All Banking Services As RBI Lifts Moratorium After Two Weeks

Yes Bank services operational

The current appointments come a few days after Yes Bank approved the reconstitution of its board with RBI-appointed administrator Prashant Kumar as the new CEO and Managing Director. Also, Sunil Mehta was appointed as the non-executive chairman while Atul Bheda and Mahesh Krishnamurthy will serve as non-executive directors of Yes Bank. Meanwhile, the full banking services of Yes Bank became operational on Wednesday from 6 pm nearly two weeks after the RBI imposed a moratorium. In a tweet, Yes Bank confirmed the development. It thanked the customers for their patience and cooperation.

Read: Anil Ambani Appears At ED In Money-laundering Probe Against Yes Bank Founder Rana Kapoor

Yes Bank reconstruction scheme

On March 5, the RBI imposed a moratorium on Yes Bank, superseding its Board of Directors. The RBI cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of the reasons for taking action. A day later, the RBI unveiled a draft reconstruction scheme of Yes Bank in the public domain. 

On March 13, the Union Cabinet approved the reconstruction scheme of Yes Bank as proposed by RBI. The SBI has declared that it would purchase 725 crore shares of Yes Bank at Rs. 10 per share subject to regulatory approvals. As per reports, other lenders including ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and individuals like Radhakrishna Damani, Rakesh Jhunjhunwala and Azim Premji Trust have joined SBI in investing in Yes Bank.  

Read: RBI Guv States 'Yes Bank Reconstruction Scheme Sustainable'; Hails Pvt-public Partnership

Read: 'More Cash Inflow Than Withdrawals,' Says Yes Bank To Depositors; SBI To Raise Stake Soon