Ashok Chawla Steps Down As Yes Bank Chairman

Mumbai: Former bureaucrat Ashok Chawla resigned as non-executive chairman of Yes Bank on Wednesday, the private sector bank said.

According to sources, Mr Chawla offered to quit as controversy was being generated on his continuance on the board of directors following his name appearing in a CBI charge-sheet in the Aircel-Maxis case.

“Yes Bank announces that Shri Ashok Chawla, Non-Executive Independent Part-Time Chairman, has tendered his resignation from the Bank’s Board, with immediate effect, mentioning that during the current transition period, the Bank would need a Chairman who could devote more time and attention,” the bank said in a regulatory filing.

The bank further said that it would in due course announce the appointment of a chairman after approval of the Reserve Bank of India.

According to sources, representations were being made by shareholders and stakeholders to the bank as well as regulators such as Sebi questioning his continuance on the Yes Bank board after being named in charge-sheet filed in the Aircel-Maxis case by the premier investigating agency CBI in July.

Former finance secretary Mr Chawla had also worked as chairman of fair trade regulator CCI or Competition Commission of India.

Following representations, the bank’s nomination & remuneration committee had decided to seek legal opinion on his continuance as a chairman. It was observed the bank should seek the opinion of the RBI on Mr Chawla’s issue, sources said.

Later, the bank sought the RBI’s opinion, though no reply was received from the regulator, sources said, adding that Mr Chawla himself offered to quit in the interest of the bank.

Another independent director Vasant Gujarathi too has tendered his resignation with immediate effect due to personal commitments, the bank said in another filing.

However, sources said Mr Gujarathi, who was heading the audit committee, had resigned because of certain observations made by the RBI on issues related to audit and corporate governance in the bank.

The bank’s board has also approved appointment of Uttam Prakash Agarwal as an additional director (Independent) for a period of five years.

The Reserve Bank of India has already asked the private sector bank to find replacement of founder MD and CEO by January 31.

Last month, Yes Bank had said the panel looking for a successor to MD and CEO Rana Kapoor had finalised potential candidates.

Yes Bank shares closed 1.37 per cent lower at Rs. 222.5 on the BSE.