BT Buzz: Yes Bank reports record losses, new CEO Ravneet Gill gets cracking
In the just released fourth quarter results, Gill said he will lay emphasis on granularity, sustainability and digitisation, while maintaining highest standard on compliance and prudence in risk
- Apr 27, 2019,
- Updated Apr 30, 2019 3:16 PM IST
Foreign banker Ravneet Singh Gill is in unfamiliar territory. After having spent his almost entire career in a foreign bank, he is now heading a mid-sized private bank. Secondly, Gill, who holds a master's degree in political science from Delhi University, is filling the shoes of a founder and professional, who scaled up the bank in the shortest possible time. In fact, Rana Kapoor actually nurtured the bank like an entrepreneur. The circumstances under which Gill has entered the bank -- after RBI refused to extend the tenure of Rana Kapoor -- were also challenging. In fact, Rana's favourite Rajat Monga, executive director at the bank, also lost out in the race for CEO to Gill. Another senior professional, whom Kapoor poached from HDFC Bank to scale up the retail banking Executive director Pralay Mondal, also left when he realised he would no longer be working under Kapoor.
But Gill, who is just a month old in the bank, has already started strategising. In the just released fourth quarter results, Gill said he will lay emphasis on granularity, sustainability and digitisation, while maintaining highest standard on compliance and prudence in risk. There are already reports of him revamping the entire management team. This is something the market has seen before when two foreign bankers joined the private banks. Vishwavir Ahuja, who came from Bank of America and built a new team at RBL Bank to completely turnaround the old private sector bank. Similarly, Romesh Sobti, who came from AMB Amro and transformed the IndusInd Bank with a completely new team of foreign bankers.
The role of the earlier team under Kapoor has come under the scanner as the bank faced huge NPA divergences and compliance issues. Probably Monga's name didn't find favour with the RBI because of the same reasons. There is also a Madhu Kapur factor. The wife of another co-founder Ashok Kapur, who died in the Mumbai terrorist attack, was earlier not happy with the way Kapoor was running the bank. However, the two warring promoters of the bank seem to have buried the hatchet now. Madhu Kapur would also like a new team to take the bank forward.
Two new CEOs at other private banks have also come out with a new game plan to revive and kick start the growth. At Axis, the new CEO Amitabh Chaudhry wants to focus on 'growth, profitability and sustainability.' Similarly, Sandeep Bakhshi at ICICI Bank is eyeing the growth in core operating profits. There are many challenges that Gill will have to address;
YES Bank share price gains after Deutsche Bank raises price target
Foreign banker Ravneet Singh Gill is in unfamiliar territory. After having spent his almost entire career in a foreign bank, he is now heading a mid-sized private bank. Secondly, Gill, who holds a master's degree in political science from Delhi University, is filling the shoes of a founder and professional, who scaled up the bank in the shortest possible time. In fact, Rana Kapoor actually nurtured the bank like an entrepreneur. The circumstances under which Gill has entered the bank -- after RBI refused to extend the tenure of Rana Kapoor -- were also challenging. In fact, Rana's favourite Rajat Monga, executive director at the bank, also lost out in the race for CEO to Gill. Another senior professional, whom Kapoor poached from HDFC Bank to scale up the retail banking Executive director Pralay Mondal, also left when he realised he would no longer be working under Kapoor.
But Gill, who is just a month old in the bank, has already started strategising. In the just released fourth quarter results, Gill said he will lay emphasis on granularity, sustainability and digitisation, while maintaining highest standard on compliance and prudence in risk. There are already reports of him revamping the entire management team. This is something the market has seen before when two foreign bankers joined the private banks. Vishwavir Ahuja, who came from Bank of America and built a new team at RBL Bank to completely turnaround the old private sector bank. Similarly, Romesh Sobti, who came from AMB Amro and transformed the IndusInd Bank with a completely new team of foreign bankers.
The role of the earlier team under Kapoor has come under the scanner as the bank faced huge NPA divergences and compliance issues. Probably Monga's name didn't find favour with the RBI because of the same reasons. There is also a Madhu Kapur factor. The wife of another co-founder Ashok Kapur, who died in the Mumbai terrorist attack, was earlier not happy with the way Kapoor was running the bank. However, the two warring promoters of the bank seem to have buried the hatchet now. Madhu Kapur would also like a new team to take the bank forward.
Two new CEOs at other private banks have also come out with a new game plan to revive and kick start the growth. At Axis, the new CEO Amitabh Chaudhry wants to focus on 'growth, profitability and sustainability.' Similarly, Sandeep Bakhshi at ICICI Bank is eyeing the growth in core operating profits. There are many challenges that Gill will have to address;
YES Bank share price gains after Deutsche Bank raises price target