The new board of the troubled lender YES Bank will convene its first meeting after the government notified the scheme of reconstruction for the bank on March 26.
This is in accordance with the reconstruction notification, which stated that the new board would take over within seven working days of the moratorium being lifted on March 18.
A new 8-member board has already been announced.
The government notified scheme said Prashant Kumar, who is currently serving as the Administrator of Yes Bank, will take over as the Chief Executive Officer. Sunil Mehta, the former Chairman of Punjab National Bank will take over as the non-executive Chairman of Yes Bank. Mahesh Krishnamurthy and Atul Bheda will be the other Non-Executive Directors.
State Bank of India, which is the lead investor and will pick up 49 percent stake in the bank, has nominated two of its deputy managing directors - Jankiraman Swaminathan and Partha Pratim Sengupta-to the board.
Reserve Bank of India has additionally named Ananth Narayan, Associate Professor at SP Jain Institute of Management and Research, and R Gandhi- the former Deputy Governor of RBI, as directors on the board.
Fund-raising will be on top of the agenda for the March 26 board meeting, a senior executive at Yes Bank told CNBC-TV18, as the bank looks at a second round of fund-raising to meet regulatory requirements and clean up its books.
Prashant Kumar, Yes Bank’s administrator, had earlier said at a press conference last week that the second round of fund-raising would help the bank meet any additional provisioning requirements, and the first round of Rs 10,000 crore capital infusion from eight financial institutions would largely be needed to meet regulatory capital requirements and for growth.
Separately, financial institutions led by State Bank of India are expected to conclude their fund infusion in Yes Bank before the close of the current financial year, as per a board member of Yes Bank.
SBI has announced its intention to invest Rs 6,050 crore in Yes Bank, scaled down from Rs 7,250 crore initially announced . Other investors are HDFC and ICICI Bank (Rs 1,000 crore each), Axis Bank (Rs 600 crore), Kotak Mahindra Bank (Rs 500 crore), Bandhan Bank and Federal Bank (Rs 300 crore each) and IDFC First Bank (Rs 250 crore).
