Yes Bank shares rose 5 percent on Tuesday after reports said Deutsche Bank boss Ravneet Gill is likely to become the embattled lender's CEO.
Yes Bank, which has been on the lookout for a CEO ever since Rana Kapoor's tenure was struck down late last year, said it has finalised the names for the top post and was awaiting regulatory approval.
According to a report by CNBC-TV18, Gill should easily get the nod of the Reserve bank of India (RBI) as he had cleared RBI's due diligence checks six months ago.
Rajat Monga, Senior executive at Yes Bank, is also in the running for the top post. January 31 is the deadline for the bank to appoint a new CEO.
According to market speculation, Gill has an edge over Monga. "These two names have gone to the RBI and Gill, by virtue of being an outsider along with his experience as CEO of a bank, is the frontrunner," the Economic Times quoted an unnamed source as saying.
Gill is a 32-year veteran in the banking industry, having worked in Deutsche bank in a long and illustrious career. He took over as the German bank's India head in 2012.
In September, the RBI decreed that Rana Kapoor cannot stay at the helm beyond January 31, and rejected subsequent appeals for revising of the decision. Kapoor's three-year term had expired on August 31.
The RBI's order limiting his term to January 31 had dealt one of the biggest shocks to the lender's stock. Following the central bank move, Yes Bank's stock fell 39 percent, wiping out a staggering Rs 32,722 crore of the shareholder wealth.
On January 10, the bank submitted to the RBI names of potential candidates for its Managing Director and Chief Executive post. "As mandated under the extant RBI norms, the Bank's Board will submit an application to the RBI on January 10, 2019, seeking approval for the appointment of the new MD and CEO of Yes Bank," the lender said in a regulatory filing to the BSE.
Turbulent journey
According to initial round of speculation, Monga and Rajesh Sud, former MD and CEO of Max Life Insurance, were the top contenders. However, it was reported later that Sud had declined the offer.
Yes Bank, one of India's leading private banks, has had a turbulent journey ever since the Reserve Bank of India (RBI) forced its CEO Rana Kapoor to cut short his term at the helm. Since then, India's fifth largest private sector lender by assets has faced intense media scrutiny in the midst of multiple regulatory checks, senior level resignation and a stock price decline.
