Reserve Bank of India (RBI) has approved the appointment of Prashant Kumar as the Chief Executive Officer and Managing Director of the bank for three years. His appointment has come into effect from October 6, as per the latest exchange filing.
The filing read, “We would like to inform that RBI vide its letter dated October 06, 2022 has approved the appointment of Mr Prashant Kumar as the MD and CEO of the Bank under Section 35B of the Banking Regulation Act, 1949 for a period of three years effective from today i.e., October 06, 2022 subject to approval of shareholders.”
The filing stated that Kumar is not related to any other director or important managerial personnel in the bank and is not barred from holding the office of a director by SEBI or any other regulatory body. Kumar was appointed as the CEO and MD of the bank after its reconstruction in March 2020.
Upon Kumar’s appointment as the CEO and MD of the bank, a forensic probe was conducted into some of its top accounts that either turned NPAs or were declared as fraudulent. These accounts included Cox & Kings, ADAG Group, Essar Group and Essel Group.
The RBI had placed YES Bank under a moratorium as the bank gave out large loans which it failed to recover. The central bank said, “YES Bank… shall not grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment, whether in discharge of its liabilities and obligations, or otherwise enter into any compromise or agreement, or shall transfer or otherwise dispose of any of its properties or assets.”
Before his YES Bank stint, Kumar was the Deputy Manager and CFO at State Bank of India (SBI), which he joined as a probationary officer (PO) in 1983. Kumar has a degree in science and law from Delhi University.