Mass Exodus of Directors From Yes Bank in 3 Months
Financial year 2018-19 marked a rather unsettling year for Yes Bank even more so for its board of directors.
 
Ever since Rana Kapoor was not permitted by the RBI to continue to be on the Board of Directors of Yes Bank, the bank has suffered an exodus of directors. Only two members of board from April 3rd 2018 remain.
 
 
Ashok Chawla tendered his resignation without giving any reasons. Mr Chawla was named in a corruption case filed the Central Bureau of Investigation (CBI) in the Aircel-Maxis case. Vasant Gujarathi the head of the Audit Committee also tendered his resignation on the same day as Ashok Chawla. The Audit committee performance issues have also been cited as a reason for Gujarathi resigning.
 
Lt General (Dr.) Mukesh Sabharwal resigned in order to pursue academics whereas Mr. Saurabh Srivastav did the same after completion of his term on 22nd April 2018.
 
Brahm Dutt has been appointed as part time chairman of the Bank till 10th January 2022, which has been approved by the RBI.
 
Debjani Ghosh tendered her resignation from the board of Yes Bank on account on her joining NASSCOM as Executive President.
 
The Current Board of Yes Bank as of 12th June 2019 is as follows. 
 
 
Here are some details regarding the recently appointed members:
 
1. Shri R Gandhi, ex deputy governor of RBI has been appointed as an additional director on the board of the bank for 2 years.
 
2. Mr. T.S. Vijayan is appointed as an additional Director (Independent) of the Bank with Immediate effect and his appointment is for a period of 5 years.
 
3. Mr. Uttam Prakash Agarwal has been appointed as an additional Director (Independent) of the bank with immediate effect and his appointment as independent director for a period of 5 years subject to the approval of shareholders in the next General Meeting of the Bank.
 
4. The Board of Directors of the Bank on April 26th, 2018 have approved the appointment of Dr. Pratima Sheorey as an additional (Non executive and Non independent) director of the bank.
 
No sooner was Mr. Chandrashekhar  appointed to the Board of Directors of Yes Bank than he chose to resign as he was “unhappy with developments taking place in the recent past and how it was handled”. All of this hints at grave mismanagement in Yes Bank.
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COMMENTS

Bipin Kochar

3 days ago

Given the lack of confidence indicated by the investors in Ravneet Gill, the board should immediately induct 4-5 shareholder directors.

Further, board should pass a resolution that any fresh dilution will either be through a rights issue or priced not less than the last QIP issue as adjusted for bonus or splits.

Ramesh Poapt

4 days ago

R Gill told that it will take 3 yrs+ to clean the bank.

V ganesan

4 days ago

when ever a stock is rising tremendously in one decade is correcting in the next decade.there is no exception.only few have outperformed continuously. it has moved up from Rs.40 to RS. 2000 of facevalue Rs.10 in the last decade.It is bound to correct.It may underperform in the next few years.

REPLY

Ajay Sharma

In Reply to V ganesan 4 days ago

It is always best to look at the fundamentals before citing mean-reversion. By your logic the broad stock market should never increase decades at a time; higher gains in one decade would result in losses in the next!

SANDESH PAWAR

4 days ago

well the valuations are mouth watering. Even Warren Buffet invest in banks when they are stressed. He always says it will be worth more in the future. don't put a number.
I have been tracking Ravneet Gill in interviews not related to business & he seems like a good man with good values. I think we have a really good opportunity to buy at this level.

REPLY

Arun

In Reply to SANDESH PAWAR 4 days ago

Valuations may look mouth-watering. But, the stress this bank has gone through so far is just the tip of the iceberg. It may be wise to stay away from this stock.

Ajay Sharma

4 days ago

It is also worth noting that this chaos at the BoD hints at the uncertainty surrounding the accountability of Directors. What Director would want to be with a company that was in turmoil? Especially when they may not particular want to get into the nitty-gritty of the business.

Nirav Modi denied bail by UK court
A British court on Wednesday extended, till June 27, the judicial custody of Nirav Modi, while rejecting his bail plea as it suspected that he could "interfere" with witnesses.
 
The Westminster Magistrates' Court ordered the Metropolitan Police to put him under its custody till the next hearing on June 27.
 
The 48-year-old businessman, wanted in India in connection with the multi-crore Punjab National Bank (PNB) fraud case, was arrested from Holborn here on March 19. Since then he has been fighting extradition proceedings. 
 
The court cited alleged efforts to interfere with witness statements and destruction of evidence for extending Nirav Modi's judicial custody.
 
The businessman and his uncle Mehul Choksi are being investigated by the Enforcement Directorate and the Central Bureau of Investigation after the PNB alleged that they cheated it of Rs 13,500 crore with the involvement of a few bank employees. 
 
Nirav Modi also faces charges under the Fugitive Economic Offenders Act. The ED has filed a chargesheet against Choksi in a Prevention of Money Laundering Act Court in Mumbai. 
 
Both fled India before the details of the fraud emerged in January 2018 before the scam was unearthed.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Punjab National Bank admits staggering loan defaults of Rs 25,000-crore
The beleaguered public sector Punjab National Bank (PNB) has admitted to 1,142 big and small defaulters all over India who have defaulted a stupendous Rs 25,090.3 crore.
 
Of these 1,142, the PNB has so far initiated recovery proceedings by filing suits against 1,108 defaulters to recover Rs 23,879.8 crore.
 
However, no suits have been filed against the remaining 34 defaulters who owe the bank Rs 1,210.5 crore.
 
As is mandatory, the RBI has been informed of the status of all these messy accounts -- some of them several years old and recoveries still pending from them -- as on March 31, 2019.
 
The veritable ‘hit-list' prepared by the country's second largest PSB covers all defaulters owing PNB Rs 25 lakh and above, through all its branches in all states, with the highest numbers emerging from Maharashtra, Punjab, Delhi, Chandigarh, Gujarat, Uttar Pradesh and West Bengal.
 
Mysteriously, some companies which availed of loans are shown as registered abroad, while others which are registered in India have taken loans from the PNB from its overseas branches.
 
Interestingly, the list of debt-dodgers goes beyond the duo of absconding diamantaires Nirav D. Modi and Mehul C. Choksi - whose scams worth around Rs 14,000-crore first brought the PNB imbroglio into the limelight in early 2018.
 
Also figuring in the list is another high-profile absconder, Vijay Mallya, who owes Rs 597.4 crore on the defunct Kingfisher Airlines account.
 
The other defaulters include Kudos Chemie Ltd., Chandigarh (Rs 1,301.8 crore), Winsome Diamonds & Jewellery Ltd. Surat (Rs 899.7 crore), Jas Infrastructure & Power Ltd., Kolkata (Rs 410.9 crore), Zoom Developers Pvt. Ltd. Mumbai/Indore (Rs 410.1 crore).
 
A few defaulters like Kingfisher Airlines, Winsome Diamonds & Jewellery Ltd, Kudos Chemie Ltd. and Zoom Developers Pvt. Ltd. are currently being investigated by the Central Bureau of Investigation (CBI).
 
When contacted by IANS, PNB officials declined to comment on the list of defaulters.
 
Recently, the PNB has initiated proceedings to recover around USD 13 million from the Tarapur Textile Park Ltd., Palghar (Maharashtra), which availed the loans from PNB's London branch.
 
According to official sources, now the PNB is planning to hand over the case to both CBI and the Serious Frauds Investigation Office (SFIO) and invoke the guarantees provided by TTPL's Chairman Arunkmar Muchhala, and the directors Ritika Muchhala and Trinkal Muchhala.
 
With reference to this instance, the buzz in banking circles is - how companies registered in India availed massive loans from PNB's foreign branches, and similarly, how companies registered on foreign shores were granted loans from the bank's Indian branches, without the connivance of certain officials.
 
The All India Bank Employees Association General Secretary C. H. Venkatachalam termed as "a very serious matter that one bank has such a massive number of defaulters of public money".
 
"Plus, it is not confined to one bank and all banks have such bad loan accounts. A bulk of defaulters are corporates or big companies and a forensic audit of all should be carried out. Why can't the bank file criminal cases against the big-time willful defaulters instead of merely civil suits which can drag on for years," Venkatachalam told IANS.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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COMMENTS

Sunil shenava

2 days ago

Hardly anyone highlights these facts...

what\'s the RBIs control over the banks..

it seems everyone pushes the dirt under the carpet...so much so that it has piled up and now cannot be hidden...

Ramesh Poapt

4 days ago

OMG!!!

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