Rana Kapoor's future role dominates proceedings at Yes Bank’s AGM

Founder Rana Kapoor's future role dominated proceedings at Yes Bank’s annual general meeting, the first for new MD and CEO Ravneet Gill, on Wednesday, but reports suggest the management did not say anything concrete.

Kapoor, who was denied another term as CEO by banking regulator last year leading to a change of guard on top at the private lender, has demanded a seat on the bank’s board, which triggered resignations of two independent directors over the past two days, Economic Times reported.

Kapoor has also sought a compensation for his lost payment.

The bank’s shares slipped 4 per cent in Wednesday’s trade on BSE to Rs 139.90, having come off 41 per cent since its March quarter earnings on April 26.

According to an ET NOW report, while shareholders did seek to know if Kapoor will have a role to play at the top management in future, no question was raised about his re-entry into the bank’s board.

Moody’s Investors Service on Tuesday placed the bank’s ratings under review for a downgrade, citing its large exposure to debt-laden non-banking financial companies (NBFC) and the possibility that loans on its watch list could slip into non-performing assets (NPAs).

In a note, the rating agency said it has placed the bank’s foreign currency issuer rating, long-term foreign and local currency bank deposit ratings, medium-term note issuer rating under review for a possible downgrade.

For March quarter, the bank reported a surprise loss of Rs 1,506.64 crore on a spike in provisions and contingencies. Provisions jumped to Rs 3,661.70 crore from Rs 399.64 crore in the year-ago period. Net NPAs rose to 1.86 per cent from 1.18 per cent on a sequential basis and 0.64 per cent in the year-ago period.