Yes Bank: Rescue plan takes effect, withdrawal limit to go in 3 working days

Yes Bank: Rescue plan takes effect, withdrawal limit to go in 3 working days

The government has notified the reconstruction scheme for Yes Bank, cleared by the Union Cabinet on March 13.

It has appointed Prashant Kumar as the CEO & MD of reconstructed Yes Bank. Kumar is the former CFO and Deputy MD of State Bank of India (SBI) and was appointed Administrator to the troubled lender by the Reserve Bank of India (RBI).

He will vacate office as Administrator within seven calendar days from cessation of the moratorium.

Former Non-Executive Chairman of Punjab National Bank Sunil Mehta is appointed as Non- Executive Chairman. Mahesh Krishnamurthy and Atul Bheda are Non-Executive Directors. The new board is also to be formed within seven days from cessation of the moratorium.

Further, the notification states "the investor bank (SBI) shall nominate two more officers as Directors to the new board and the RBI may appoint one or more additional directors as necessary.”

The new board may co-opt more directors to it as permitted under Articles of Associated. Members of the board, except additional directors, are to continue in office for one year or until an alternate board is constituted by the reconstructed bank.