YES Bank on Thursday said it had appointed two new independent directors - Saurabh Srivastava and Vasant V Gujarathi - to its board. This comes at a time when Madhu Kapur, widow of the bank's co-founder, Ashok Kapur, is contesting the appointment of three other directors - MR Srinivasan, Diwan Arun Nanda and Ravish Chopra - to the bank's board.
In her petition, Madhu Kapur had alleged Srinivasan, Nanda and Chopra didn't meet the Res-erve Bank of India (RBI)'s 'fit and proper' criteria. She also claimed her right, as co-promoter of the bank, had been violated-she wasn't consulted while the three directors were appointed.
Madhu Kapur's sister, Bindu, is the wife of Rana Kapoor, YES Bank's other co-founder.
After Madhu Kapur had moved the Bombay High Court, the bank had elevated three senior management executives-Rajat Monga, Sanjay Palve and Pralay Mondal-to the board, subject to RBI's and shareholders' approval.
Sources close to the Kapur family said, it wasn't consulted on the appointments of Srivastava and Gujarathi. "There was no consultation. It was decided no new board appointments will be made till the current dispute is resolved. But once again, new board members have been inducted. We will contest these (new) appointments," a source said, requesting anonymity.
The Bombay High Court had asked Rana Kapoor and Madhu Kapur to settle the dispute out of court. A hearing on the matter had been postponed to Apr il 29, as the bank's board was scheduled to meet on Wednesday, at which it was expected to discuss the issue.
Sources said the board had discussed the issue at its meeting, adding it would announce its decision soon.
Before the two new appointments and excluding the elevation of the three senior management executives, the YES Bank board comprised eight members, including Rana Kapoor, the bank said in a statement. With Srivastava and Gujarathi joining the board, the bank will now have seven independent directors.
Srivastava is co-founder and ex-chairman of Nasscom. At YES Bank, he will chair the bank's recently constituted IT strategy committee. Gujarathi, ex-partner of Pricewa-terhouseCoopers/Lovelock & Lewes, will be a member of the bank's audit committee.
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