YES Bank to form alternate board after successful recovery following reconstruction

"The alternate Board is being constituted and will operate under the applicable laws & regulations as against the current Board which was constituted and is functioning under the ambit of the Reconstruction Scheme," the bank said in an official release.

Pursuant to the recommendations of its largest shareholder State Bank of India, the board proposed the composition of the alternate Board comprising Atul Malik, Rekha Murthy Sharad Sharma, Nandita Gurjar, Sanjay Kumar Khemani, Sadashiv Srinivas Rao, T Keshav Kumar, Sandeep Tewari and Prashant Kumar, existing managing director and chief executive (MD & CEO).

State Bank of India has proposed Prashant Kumar for the position of MD&CEO for a period of three years, which will be subject to the approval of the alternate Board, Reserve Bank of India and the shareholders.

The term of two Additional Directors -- R. Gandhi and Ananth Narayan Gopalakrishnan, appointed by RBI is valid up to March 23, 2023, or till further orders, whichever is earlier.

The Centre had notified YES Bank Reconstruction Scheme, 2020 on March 13, 2020 to salvage the troubled bank which was founded and run by Rana Kapoor. The existing Board of the bank was constituted under the rules laid under the Reconstruction Scheme.

Chairman Sunil Mehta, Board members as appointed under the reconstruction scheme Mahesh Krishnamurti and Atul Bheda – will hand over charge to the alternate Board "having overseen the significant turnaround of the bank in record time and having achieved the primary purpose for which they were mandated per the YES Bank Reconstruction Scheme, 2020," the official statement said.

"As a first step, the Board has recommended to the shareholders the appointment of directors as recommended by SBI on the alternate Board," it added.

The shareholders’ meeting (AGM) is scheduled on Friday, July 15, 2022 to consider the relevant resolutions.

FY22 was the first full-year profit for the Bank at Rs 1,066 Crores after two successive years of heavy losses in FY20 and FY21.

The lender nearly doubled the deposit book from about Rs 1.05 lakh crores (Mar-20) to around Rs 1.97 lakh crores (Mar-22). CASA Ratio (ratio of current account and savings account deposits) back in excess of 30 percent.

Significant corrections and improvements in the liquidity position and funding structure of the Bank expressed through CD Ratio improved from 163 percent to 92 percent and Liquidity Coverage Ratio improving from 37 percent to 128 percent.

The bank raised Rs 15,000 crores of equity capital in July 2020 through one of the largest public issues in this country. CET1 Ratio improved from 6.3 percent (Mar-20) to 11.6 percent (Mar-22).

Continuous granularization of the Balance-sheet, with Retail / MSME mix improvd from 44 percent (Mar-20) to 60 perecnt (Mar-22).

Focus has moved from the consolidation of the balance sheet to growth, the bank said.

In FY22, Loan Book grew by nearly 9 percent with Gross Disbursements of nearly Rs 70,000 Crores across all segments.

YES Bank said it has undertaken multiple initiatives to review and make necessary changes to its governance frameworks and processes with a key focus on the credit underwriting policies and practices.

The lender maintained top position in Digital Payments with the highest market share in UPI. One in every 3rd digital transaction is processed by YES Bank infrastructure, it said.