YES Bank to form alternate Board after exiting restructuring scheme

The Board of YES Bank has recommended formation of an alternate Board on the back of the private sector bank attaining turnaround and achieving significant progress post the implementation of Reconstruction Scheme March 2020.

Following the recommendation by its largest shareholder State Bank of India (SBI), the Board proposed composition of an alternate board. Names of directors proposed are 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).

SBI has proposed Prashant Kumar’s name for MD & CEO’s position for a three-year term.

The term of two Additional Directors – R Gandhi and Ananth Narayan Gopalakrishnan, appointed by the RBI, is valid upto March 23, 2023. Sunil Metha, chairman, Yes Bank, and other board members — Mahesh Krishnamurti and Atul Bheda — will demit office on formation of the alternate Board.

In March 2020, the Reserve Bank of India and the government had framed a restructuring scheme to salvage the troubled private sector bank which was once promoted and run by Rana Kapoor. Commercial Banks led by State Bank of India had infused Rs 10,000 crore under restructuring scheme.

The alternate Board is being constituted and will operate under the applicable laws and regulations as against the current Board which was constituted and is functioning under the Reconstruction Scheme, the bank said in a notice to shareholders. The bank has convened the Annual General Meeting of shareholders on July 15, 2022.

FY22 was a 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 trillion in Mar 2020 to Rs 1.97 trillion in March 2022.

The share of low cost deposits – current account and savings account was now in excess of 30 per cent.

Its advances stood at Rs 1.81 trillion at the end of March 2022. In FY22, the loan book grew by 9 per cent with gross disbursements of Rs 70,000 crore across all segments. The focus has moved from consolidation of the balance-sheet to growth.

There have been significant corrections and improvements in the liquidity position and funding structure. The bank’s credit to deposit ratio has improved from 163 per cent to 92 per cent and liquidity coverage ratio rose from 37 per cent to 128 per cent by March 2022.

YES Bank raised Rs 15,000 crore of equity capital in July 2020 through a public issue. Its common equity tier-I improved from 6.3 per cent in March 2020 to 11.6 per cent in March 2022.

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