Yes Bank promoters settle dispute, agree to nominate one director each on board; stock surges 5%

Private sector lender Yes Bank on Tuesday said that its promoters Rana Kapoor and Madhu Kapur have agreed to nominate one representative director each on the bank's board, ending their difference after a nearly decade-long dispute.

Cheering the news, shares of the bank gained as much as 5.40 per cent in early deals to touch a high of Rs 213.55 apiece on the Bombay Stock Exchange, after making a positive start at Rs 210 against previous closing price of Rs 202.60.

In a similar trend, stocks of the lender were trading up 1.48 per cent to trade at Rs 205.90on the National Stock Exchange.

Earlier on November 20, 2018, Yes Bank had stated that efforts were being undertaken for mutual resolution and truce between Rana Kapoor Group and Madhu Kapur and family, the two co-promoter groups of the bank.

"This is intended to ensure better coordination and support by the two promoter groups with the new MD & CEO and the board of directors of the bank," Yes Bank said in a filing to the Bombay Stock Exchange.

"The two new appointed Directors will be announced at the next scheduled Board meeting in April, 2019."

Also Read: Dewan Housing Finance stock falls 9.73% amid Rs 31,000-crore fraud allegations by Cobrapost

The Mumbai-headquartered bank further said that its select senior board of directors had also interacted with Madhu Kapur and family, recently.

According to media report, talk between the two groups started after the Reserve Bank of India cut short Rana Kapoor's term and directed him to step down from his position after January 31.

The board of directors of the bank held a special board meeting on Tuesday, to finalise on the delegation of powers for transition management in the interim period commencing from February 1, 2019 until Ravneet Gill assumes office.

The board also approved and recommended to the RBI for its approval, a senior Board Director for temporarily holding the office as 'Board Director on Interim Special Duty (MD & CEO's responsibilities)' from February 1, 2019, till such date Ravneet Gill assumes office in March 2019, the bank said in the exchange filing.

Last week, the bank appointed Ravneet Singh as the next Managing Director and CEO of the bank, who will replace founder Rana Kapoor for the top job at the private lender. Gill presently heads Deutsche Bank India.

Edited by Chitranjan Kumar