Mumbai former Reserve Bank deputy Governor Rama Subramaniam has been appointed as additional director on the board of Yes Bank for two years, the private lender said Tuesday.
The appointment will significantly strengthen Yes Bank’s Board composition and the bank will immediately benefit from R. Gandhi’s experience and wisdom at the Yes Bank.
According to a BSE filing, Gandhi joined the Board for a period of 2 years with effect from May 14, 2019 to May 13, 2021 or “till further order, whichever is earlier.”
Yes Bank has witnessed plenty of top level churn in the past few months, with independent directors quitting, the RBI asking its founder and former MD and CEO Rana Lapped to step down, and at least one senior executive, Pralay Mondal, who had headed the retail and business vertical, tendering his resignation after Ravneet Gill took over as the new chief.
“While there are problems in the bank and balance sheet looks stressed with capital position being weak, the move by RBI could be a precautionary move and any failure here could have serious systemic implications. Hence RBI could be cautious and pre-emptive here,” Ganapathy wrote in a note.