On Tuesday, in a notice to the stock exchanges, the bank informed that the RBI has appointed Rama Subramaniam Gandhi as an additional director on the board of Yes Bank for two years, effectively from 14 May 2019 to 13 May 2021.
The appointment has been made under sub-section (1) of Section 36 AB of the Banking Regulation Act, 1949, the private sector lender said.
According to this section, RBI can appoint additional directors “if the Reserve Bank is of [opinion that in the interest of banking policy or in the public interest or] in the interests of the banking company or its depositors it is necessary so to do, it may, from time to time by order in writing, appoint, with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the banking company.”
As the backdrop of the Yes Bank reported a loss of Rs 1,507 crore for the March quarter driven by a 9-fold increase in provisions, Gandhi’s appointment came to the forth.
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