Re-Appointment Of Rana Kapoor As The MD & CEO Of YES Bank Limited
The brand value of YES BANK continues to be a key strength for the bank. The YES BANK brand was recently recognized as the 22nd Most Valuable Indian Brand by WPP BrandZ Report 2018 with a brand value of $ 2.62 billion
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This is with reference to YES Bank’s release to the stock exchanges dated September 19, 2018 on the subject reappointment of MD & CEO.
At the outset, the YES Bank would like to inform its stakeholders that the Bank and its MD & CEO will be fully guided by its Board of Directors, the Reserve Bank of India and other relevant stakeholders. The Bank’s management remains committed to protecting the interests of all of its stakeholders.
The Bank would like to further state the following:
1. The Bank has a demonstrated track record of consistent delivery of business & financial outcomes over the last 14 years, since the commencement of its operations in mid-2004, across all critical parameters such as capital adequacy, credit risk, profitability, operating efficiency, growth, etc.
The following table summarizes the Bank’s key performance indicators:
Small Bank Phase (FY06 to FY10)
Medium Bank Phase (FY11 to FY15)
Large Bank Phase (FY16 to FY18)
* As on date; # simple average RoE
2. Further, the Bank has also consistently demonstrated a track record of raising and accreting capital across various instruments and cycles, with a Capital Funds base of ~ Rs. 50,000 Crores (~$6.9Bn), having started with a Capital Funds base of Rs. 217 Crores (~$30Mn) in 2004. This includes Rs. 3,042 Crores (~$420Mn) of Basel III compliant Tier II bonds recently raised by the Bank in September 2018.
3. The Bank reiterates the Credit Cost guidance for FY19 at 50-70bps (as was communicated by the management in the FY18 / Q4FY18 results Press Conference / Analyst Call on April 26, 2018 and subsequently vide the release for Q1FY19 Financial Results).
Credit Costs of the Bank were contained at 50bps, 53bps, and 76bps for FY16, FY17 and FY18 respectively. Bank’s Gross NPA and Net NPA ratio at 1.31% and 0.59% respectively as on June 30, 2018 remain one of the lowest across Banks in India.
4. The inherent strength in the Bank’s financial performance, strategy and execution is reflected through:
·The recent upgrade (July 05, 2018) of its long-term domestic rating by CARE to AAA;
·On September 20, 2018, International ratings agency Moody’s has reaffirmed its long-term rating of Baa3 (stable outlook); and
·On September 21, 2018, Domestic rating agency ICRA has reaffirmed Domestic rating of AA+ (stable outlook)
5. The Bank has recently received the following regulatory approvals:
a. RBI license to the import of gold/silver - renewal of authorization on 2nd April, 2018;
b. RBI approval to open overseas offices at London & Singapore on 19th April, 2018;
c. SEBI approval for Custodian of Securities business on 11th June, 2018; and
d. SEBI approval to start Mutual Fund business on 3rd July, 2018.
6. The Bank continues to make significant investments in building a robust technology platform & architecture focused on innovations, customer service and cyber-security resulting in one of the most efficient and customer friendly banks in the country.
7. The brand value of YES BANK continues to be a key strength for the bank. The YES BANK brand was recently recognized as the 22nd Most Valuable Indian Brand by WPP BrandZ Report 2018 with a brand value of $ 2.62 billion.
8. The Bank is fully institutionalized as the Professionals Bank of India, over the past 14 years, driven by a seasoned leadership of over 100+ top management professionals with over 2 decades of experience and an average vintage of over 8 years with YES Bank, guided and supervised by eminent Board of Directors.
In the meantime, Rana Kapoor, CEO&MD of YES Bank expressed his views on Twitter with the series of tweets:
In this leadership transition at @YESBANK, I continue to remain fully committed to the interests of the Bank and all its stakeholders. I will be fully guided by the Board of Directors of YES BANK and the Reserve Bank of India— Rana Kapoor (@RanaKapoor_) September 28, 2018
Even after I demit office as MD & CEO of YES BANK, I will never ever sell my @YESBANK shares— Rana Kapoor (@RanaKapoor_) September 28, 2018
I will eventually bequeath my @YESBANK Promoter shares to my 3 daughters and subsequently to their children, with a request in my Will stating not to sell a single share, as Diamonds are Forever!!— Rana Kapoor (@RanaKapoor_) September 28, 2018
Diamonds are Forever: My Promoter shares of @YESBANK are invaluable to me— Rana Kapoor (@RanaKapoor_) September 28, 2018