[ad_1]
Indian billionaire Rana Kapoor is forced to leave the bar of Yes Bank, the lender he has been managing since its inception in 2004, as regulators strengthen their oversight of the Indian financial sector.
The board of Yes Bank, the fourth largest private bank in the country in terms of assets, had proposed that Mr Kapoor's term be extended until the end of August 2021.
But the Reserve Bank of India has decided that 61-year-old Kapoor could only stay until the end of January 2019, Yes Bank said in a stock market statement, without giving further details.
The central bank's action follows a thorough review over the past year regarding the transparency of the declaration of the quality of its loans by Yes Bank.
The bank has been one of the most dynamic in India in recent years. Between the end of March and the end of March, its assets were multiplied by 18 to reach 3.1 billion rupees ($ 43 billion).
But like many other banks – including most public sector lenders, as well as private companies, ICICI Bank and Axis Bank – the number of defaults in sectors such as infrastructure has increased.
The RBI found that Yes Bank had underestimated its bad debts totaling Rs. 104.7 billion in fiscal years 2016 and 2017. Last October, it imposed a fine of Rs 60 million. to the bank for breaking the standards for the recognition of bad debts, among other flaws.
Amit Tandon, founder of Institutional Investor Advisory Services, said that the RBI's intervention was part of a long-standing "checks and balances" system in the Indian banking system, aimed at protecting bank councils. Administration against a powerful executive power. .
Along with Uday Kotak of Kotak Mahindra Bank, Mr. Kapoor is one of two self-taught billionaires stemming from the liberalization of his banking sector in India over the past two decades.
Having worked in Asia for Bank of America, ANZ Grindlay and Rabobank, Mr. Kapoor partnered with his brother-in-law Ashok Kapur to obtain a banking license in 2003 and opened the first Yes Bank branch in Mumbai the following year. .
Kapoor's takeover of the bank tightened after the death of his brother-in-law during the 2008 Bombay terrorist attacks. He currently holds a 4.3% stake in Yes Bank, which now has more than 1,000 branches in India.
advisable
"He's type A – ambitious, aggressive, with a need for control," said Tandon. "He built the bank on his own."
Yes Bank is India's third-largest private lender whose executive has been forced to withdraw so far this year. ICICI's board of directors, the largest private-sector bank by its assets, has dismissed chief executive Chanda Kochhar during an inquiry into her husband's business relations with the head of a conglomerate in China. difficulty.
Axis Bank, the third largest private sector lender, postponed the departure of its chief executive, Shikha Sharma, late this year, after regulators resisted a proposal for an extension until 2021.
The RBI's steadfast approach to private sector banks comes as its governor, Urjit Patel, has emphasized his limited powers over the public lenders that still dominate the sector.
After the discovery in February of an alleged $ 1.7 billion fraud in the state-controlled Punjab National Bank, Patel complained of a "deep crack" in banking regulation.
Source link
