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Former Yes Bank President Ashok Chawla met with RBI Governor Urjit Patel in his office to discuss the re-election of Rana Kapoor as General Manager. Photo: Bloomberg
Mumbai: The Reserve Bank of India (RBI) and Yes Bank Ltd exchanged at least eight letters relating to persistent governance and compliance failures and breaches of laws. Yes bank bank's statutory and regulatory rules before the regulator rejects a request for Rana Kapoor's extension The additional information now available details exchanges between the bank and RBI before the regulator's letter of September 17 rejecting the application of Kapoor extension.
Former Yes Bank president Ashok Chawla met with RBI governor Urjit. Patel in his office to discuss the reappointment of Kapoor, whose mandate was to end in August, said a person informed of the case under the guise of anonymity. asked Patel to make a quick decision on the renewal of the mandate, based on Kapoor's file. Nearly 10 days after the meeting, RBI sent a letter to Chawla refusing an extension for Kapoor.
On September 19, the bank notified exchanges concerning this mail.
At least four letters sent to Yes Bank were interviewed by RBI. the lender on "weak compliance culture", "serious violations of statutory and regulatory guidelines between 2014-15 and 2017-18", and "persistent failure of governance and compliance", according to documents reviewed by Mint . [19659003] The Mint reported for the first time that RBI raised corporate governance problems and serious failures in the operation of Yes Bank.
In an April letter, RBI had brought to the attention of this bank serious failings in the operation and governance of the bank. RBI found "extremely flimsy credit management practices, serious governance failures and a poor compliance culture."
In his letter, RBI asked the bank's board of directors to reconsider Kapoor's premium / remuneration proposal and consider the recovery of the premium. was paid to him for the years 2014-15 and 2015-16. This mention was found in a letter of 17 September.
In the September letter, denying the bank's request to grant Kapoor a three-year extension, the RBI said: "It is a matter of concern that the bank's letter (to the RBI) dated May 31, 2018 seeking approval for the renewal of Shri Kapoor's tenure did not even mention, much less respond to, our April 11 letter. Excerpts of the minutes of the Nominating and Compensation Committee (N & RC) meetings of April 25 Similarly, the Board of Directors meeting on April 26, 2018 to consider the renewal of the term of office of the Chief Executive Officer is equally silent on this aspect. "
In a letter dated August 28, Yes Bank informed RBI that she had decided [traduction]
" The bank's action of invoking a "malus" for these rulers and not to invoke a "recovery" for the general manager., is indicative of the standard of bad governance in the bank, "said the RBI in his letter of September 17.
Malus is part of a bonus that has not yet been paid and can be recovered.
The Mint reported on October 15 that the Yes Bank Board had recommended that premiums paid to Kapoor be recovered for two years Completed March 31, 2016 after RBI's adverse comments The Board also recommended that no bonus be paid to Kapoor for the 2016-17 and 2017-18 fiscal years and proposed no bonus for The following year.
Of course, the bank his subsequent correspondence with the RBI regarding the measures taken to remedy deficiencies observed by the central bank.
"It will be appreciated, however, that it is only post-facto corrective measures initiated after a persistent failure of governance and compliance reflected by the highly irregular credit management practices of the United States. the bank, serious loopholes in governance and a poor culture of compliance, "RBI said in the letter, adding that some incremental actions mentioned in the Yes Bank letter dated August 28 had been initiated by the bank only
Yes, Bank spokespersons Krunal Mehta and Amit Shah answered Mint's questions : From the outset, we wish to point out that any exchange of communication between the bank and its regulator (RBI) is secret, confidential and privileged, any unlawful, unauthorized and inappropriate dissemination of content from unofficial sources would require us to take appropriate legal action against you, both under civil and criminal laws.
2018.
So we do not understand why your publication is trying to make a sensation and resurface an old story.
The above is very serious because it can seriously damage our reputation. Therefore, we strongly urge you to exercise restraint in covering this extremely sensitive and regulatory issue, as Yes Bank is a publicly-owned banking institution and a publicly traded company. "
An e-mail sent to RBI remained unanswered until publication of this story.
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