Rana Kapoor, who was seeking another term as the CEO (chief executive officer) and managing director (MD) of Yes Bank Ltd., got shareholder approval on Tuesday. Yes Bank is known for having both loan growth and the highest proportion of disputed bad debt among its peers- the top private-sector lenders.
Rana Kapoor has been holding the position since 2004 and after the shareholder vote on Tuesday will be granted three more years as CEO and MD effective from 1 September 2018 as per the bank's statement. The new tenure will have to be given final approval by the Reserve Bank of India (RBI).
Yes Bank shares are India's most highly-rated and trades at a valuation premium to most peers. In 2017, it was in the news when it was hauled by RBI for reporting a high divergence in bad loan classification for two consecutive years (Rs 6,355 crore in FY 2017 and Rs 4,177 in FY 2016). It was imposed with a monetary penalty of Rs 6 crore for the same.
At the AGM, shareholders also approved the board's recommendation of dividend issue of Rs 2.7 per equity share of Rs 2. A special resolution to raise capital aggregating up to $1 billion (approx Rs 6,700 crore) by way of issue of shares was also approved.
The proposal to borrow/raise funds by issuing debt securities including, but not limited to non-convertible debentures, medium-term notes (MTN) and bonds up to a total of Rs 30,000 crore was also accepted. It was also agreed that the bank's total borrowing limit be raised to Rs 1.10 lakh crore from Rs 70,000 crore.