The Reserve Bank of India has appointed its former Deputy Governor R. Gandhi as an additional director on the board of private sector lender Yes Bank with immediate effect. The appointment is for two years, that is till May 13, 2021, the bank told exchanges.
Yes Bank had posted its first-ever quarterly loss of ₹1,507 crore in the March quarter under its new MD & CEO Ravneet Gill. Mr. Gill took charge on March 1 after Rana Kapoor’s term was not extended by the RBI for three years, as approved by the board.
There are instances when the RBI appointed its nominee directors in banks like Lakshmi Vilas Bank and Dhanalaxmi Bank. But in these cases, the director was a present central bank official. Mr. Gandhi retired from the RBI as deputy governor in April 2017. The banking regulator generally appoints board members for strengthening governance in banks.
As a deputy governor Mr Gandhi was in charge of portfolios like banking operations and development, non-banking supervision, risk monitoring, among others.