Private lender YES Bank on Monday said it is fully geared up to work out a succession plan for the post of Managing Director and CEO and said the two external experts of the search and selection committee would be finalised by October 7.
The committee, which will be assisted by a global leadership advisory firm, “will evaluate both internal and external candidates and make suitable recommendations to the board of directors for onward submission to Reserve Bank of India,” the private sector lender said.
The lender is in the middle of succession planning after the RBI cut short the term of Managing Director and CEO Rana Kapoor and has asked him not to continue beyond January 31, 2019.
YES Bank also said it has submitted an application to the RBI for approval on appointment of two senior leaders of the bank as Executive Directors.
Ratings
In a communication to the stock exchanges, the lender said the ratings assigned to various debt instruments have been put on ‘credit watch with developing implications’ by CARE Ratings on account of the recent communication from the RBI restricting Kapoor’s term.
To calm investors ahead of its second-quarter results, the bank also underlined its satisfactory financial performance and said its gross non-performing accounts amount to 1.35 per cent of Gross Advances. They stood at 1.82 per cent as on September 30, 2017 and were at 1.3 per cent as on June 30, 2018.
The bank also held a conference call with analysts. “Over the past few days, some unfounded speculations regarding the bank’s asset quality have been brought to its notice. In this context, management clarifies that the asset quality continues to be stable,” it said in a statement.
The bank’s scrip, which had plunged by nearly 40 per cent since the RBI decision was announced, gained 9.68 per cent on Monday and closed at ₹201.20 on the BSE.
Deposits rise
YES Bank said its deposits grew by nearly 41 per cent as on September 30, 2018 to ₹2.23 lakh crore compared to a year ago. The CASA ratio stood at about 33.8 per cent with a growth of 28.2 per cent year on year, according to the unaudited second quarter results.
“Loans and advances grew by about 61.5 per cent year-on-year across the corporate, IBU, MSME and retail segments, aggregating to about ₹2.40 lakh crore as on September 30,” it said.