Mumbai sources reported that Ravneet Gill, the new chief executive at Yes Bank wants to increase focus on compliance and governance two critical areas in which his predecessor Rana Kapoor was found wanting to ensure that the bank is on the side of regulator. This indicates that Gill is not only cleaning up the balance sheet which saw the fifth largest private sector lender announcing the first ever loss of a whopping Rs 1,506 crore over the weekend, but also the governance practices, which led to the ouster of Kapoor by the regulator earlier this year.
Among other deficiencies, the Reserve Bank of India (RBI) had reportedly found serious lapses in governance and poor compliance culture at Yes Bank under Kapoor who was a co-promoter and chief executive, whom Gill succeeded in March after RBI asked to leave by end January due to a regulatory discomfort.
When addressing analysts’ hours after shocking with a Rs 1,506-crore loss in the March quarter, Gill cited a recent meeting with a large MNC to cite perception issues. The multinational, which banks with a foreign lender, wanted to undertake a large remittance transaction and came to Yes Bank to check if it can get the job done without the hassle of going through the RBI, something which the foreign lender insisted on.
