Board member at Yes Bank quits, cites governance concerns

Reuters Delhi, India Jan 10, 2020, 06.52 PM(IST)

File photo. Photograph:( Reuters )

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He raised 'serious concerns' around deteriorating corporate governance standards, along with compliance failures, at the bank.

Uttam Prakash Agarwal, an independent board member with Yes Bank Ltd, resigned from the lender's board and stepped down as head of its audit committee on Friday, citing major corporate governance concerns at the troubled lender.

Agarwal, in a resignation letter seen by Reuters, said there were "serious concerns" around deteriorating corporate governance standards, along with compliance failures, at the bank.

The allegations against the country's fifth-largest private lender by assets could spell more trouble for the bank, and the news sent its stock tumbling 5 percent on Friday.

Yes Bank's shares fell nearly 75 percent last year, as non-performing assets on its books have risen sharply.

Delays in the bank's plans to raise a substantial sum of fresh capital have also spooked investors. The bank has since November been talking about raising up to $2 billion in funds.

Agarwal was appointed to the board in November 2018 by the lender's former managing director Rana Kapoor.

Agarwal in his resignation letter raised concerns about the management practices of the bank's senior leadership team, and said he had shared his concerns with all the relevant regulatory authorities.

His resignation came just ahead of a Yes Bank board meeting on Friday to discuss its fundraising plans.