Ashok Chawla resigns as Yes Bank chairman

MUMBAI: Former bureaucrat Ashok Chawla on Wednesday resigned as non-executive chairman of Yes Bank, the private sector financial institution stated.

According to resources, Chawla introduced to quit as controversy was being generated on his continuance on the Board of Directors following his title showing in a CBI chargesheet in the Aircel-Maxis case.

"Yes Bank announces that Shri Ashok Chawla, Non-Executive Independent Part-Time Chairman, has tendered his resignation from the Bank's Board, with immediate effect, mentioning that during the current transition period, the Bank would need a Chairman who could devote more time and attention," the financial institution stated in a regulatory submitting.

The financial institution shall in due course announce the appointment of a Chairman, put up RBI's approval, it added.

As in keeping with resources, representations have been being made by way of shareholders and stakeholders to the financial institution in addition to regulators like Sebi wondering his continuance on the Yes Bank's Board after being named in chargesheet filed in Aircel-Maxis case by way of the premier investigating agency CBI in July.

Former Finance Secretary Chawla had additionally labored as Chairman of the Competition Commission of India.

Following representations, the financial institution's Nomination & Remuneration Committee had made up our minds to hunt legal opinion on his continuance as a Chairman. It was noticed the financial institution will have to search the opinion of the RBI on Chawla's issue, resources stated.

Later, the financial institution sought RBI's opinion, though no reply was won from the regulator, resources stated adding Chawla himself introduced to quit in the hobby of the financial institution.

Another unbiased director Vasant Gujarathi too has tendered his resignation with fast impact because of personal commitments, stated every other submitting of the financial institution.

However, resources stated Gujarathi, who was heading the audit committee, had resigned on account of sure observations made by way of the RBI on issues associated with audit and company governance in the financial institution.

The financial institution's board has additionally authorized appointment of Uttam Prakash Agarwal as an additional director (Independent) for a duration of 5 years.

The Reserve Bank has already requested the private sector financial institution to seek out replacement of founder MD and CEO by way of January 31.

Last month, Yes Bank had stated the panel looking for a successor to MD and CEO Rana Kapoor had finalised attainable candidates.

Yes Bank stocks closed at Rs 222.five on BSE, down 1.37 in keeping with cent.
Ashok Chawla resigns as Yes Bank chairman Ashok Chawla resigns as Yes Bank chairman Reviewed by Kailash on November 14, 2018 Rating: 5
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