After posting huge losses for two years in a row, private lender Yes Bank announced on Wednesday that it has begun the process of appointing an alternate board as it exits the rebuilding scheme. The lender announced that its current board of directors has suggested the formation of a new board to shareholders for approval at the next Annual General Meeting (AGM) on July 15, 2022. “The alternate board will be created and will work in accordance with existing rules and regulations, as opposed to the current board, which was constituted and is operating under the Reconstruction Scheme’s purview,” the private lender said in a statement. On March 13, 2020, the government announced the Yes Bank Reconstruction Scheme after the lender experienced a governance crisis caused by top-level mismanagement.
The rebuilding strategy aided the bank in making considerable progress in record time, resulting in a turnaround with a full-year profit of 1,066 crores in FY22. In FY20 and FY21, the bank lost a lot of money. Yes Bank said in a regulatory statement on Wednesday that the board has begun the process of assembling the alternate board based on the advice received from SBI, the bank’s largest shareholder. Since the reconstruction strategy was implemented, the bank has undertaken a number of transformational efforts that have helped it to resurrect and restore its foundation. The bank is currently on track to meet its growth and profitability targets, according to the private sector lender.
After a quick intervention by the government and RBI, a number of peer banks stepped in to inject capital into Yes Bank in exchange for stakeholding, the bank had to be bailed out in March 2020. Yes Bank infrastructure processes one out of every three digital transactions, maintaining its leadership in digital payments with the biggest market share in UPI. “By commencing the process of forming the alternate Board today, Yes Bank achieves a critical milestone in breaking out of the rebuilding program,” said Mehta, chairman of the board.
He congratulated his board colleagues, the Reserve Bank of India, the Government launches innovative schemes to help MSMEnt of India, State Bank of India, and all other investors, as well as the bank’s customers and the bank’s 24,000-plus highly dedicated employees, on the historic turnaround of one of the country’s largest private sector banks. Today, shares of YES Bank NSE 1.15 percent climbed 2% after the institution began the process of forming an alternate board.
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