MUMBAI, June 13: Rana Kapoor, the former managing director and chief executive at Yes Bank Thursday denied reports that he is attempting a comeback to the bank and said he has full confidence in his successor Ravneet Gill. Kapoor’s term was curtailed by RBI due to a slew of concerns, including poor governance and loan practices. Gill took over on March 1 and began a massive clean-up which resulted in the bank booking a maiden quarterly loss of over Rs 1,500 crore.
“Media reports have suggested that I am attempting a comeback to the board, in spite of my unequivocal denial to them,” Kapoor said in a series of tweets. Kapoor, who continues to hold over 9 percent in the bank, said he has “the fullest confidence and conviction” in Gill and the board.
Terming Gill’s efforts as “Hanumanian”, probably comparing it with the efforts mounted by one of Lord Ram’s devotees in Hindu mythology, Kapoor exuded confidence that the bank will overcome this “transitional phase”. The Rana Kapoor promoter group fully supported and voted in favour of the 19 resolutions put up at the AGM held Wednesday.
Some of the investors voiced concerns on the state of corporate governance at the lender at the meeting, according media reports.
Two directors—Ajai Kumar and Mukesh Sabharwal—had quit the board in the run-up to the AGM, fuelling speculation on what are the causes for the sudden action. Earlier in the week, global ratings agency Moody’s had threatened to downgrade the bank’s rating citing its large exposures to the struggling non-banking lenders and realty segments and ruled an upgrade over the next 12-18 months. The bank has plans to raise up to USD 1 billion in core capital.
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