Yes Bank is currently under the control of the Reserve Bank of India (RBI). The latter has come up with a reconstruction plan so that the Bank can operate normally, and its services remain uninterrupted.
The Government of India has announced a reconstruction strategy that will help the Bank overcome the ongoing crisis. Prashant Kumar, former chief financial officer of SBI has been named as the managing director and chief executive officer of Yes Bank. He was appointed as the administrator for Yes Bank last week by the RBI.
Sunil Mehta, former non-executive chairman of Punjab National Bank, will take charge as the non-executive chairman of Yes Bank. In addition, Mahesh Krishnamurthy and Atul Bheda have been appointed as non-executive directors on the new board.
Furthermore, RBI will exercise its right to appoint two additional board members and a director who will be appointed from the current shareholders with 15 per cent or more of voting right.
As for the employees, the declaration specifies that they will continue to work at their current designations and will be given the same compensation for one year.