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YES Bank director resigns citing governance issue; shares drop 5%

“I have raised my concerns on these very critical matters,” Uttam Prakash Agarwal added.

Last Updated: Jan 10, 2020, 04.40 PM IST
Uttam Agarwal resigns as Yes Bank Director, cites corporate governance failure as reason
Uttam Agarwal resigns as Yes Bank Director, cites corporate governance failure as reason
YES Bank’s independent director Uttam Prakash Agarwal resigned on Friday citing deteriorating corporate governance standards and compliance failure at the lender.

In an interaction with ET NOW, he said the private sector bank is driven by management and not driven by the board.

“The company directives are not in the best interest of minority shareholders,” Agarwal said, adding that he has informed the regulatory bodies on the same and they will look at the issues at the bank.

“I have raised my concerns on these very critical matters from time to time,” he added.

Agarwal also added that he is not okay with the process for fundraising. The private lender's board is meeting later in the day to weigh options for fundraising.

Rajiv Ubeoi is senior group president for governance and control at YES Bank.

Shares of YES Bank closed 5.29 per cent lower at Rs 44.80 on BSE after the reports, while the benchmark BSE Sensex ended 147.37 points higher or 0.36 per cent up at 41,599.72 for the Friday's trading session.

YES Bank later said that it was reviewing the 'fit and proper' status of Agarwal as directed by the Reserve Bank of India.

“In this respect, the bank had obtained legal opinions from eminent jurists. These opinions were to be considered by the Nomination and Remuneration Committee of the Board ("NRC")/ the Board of the Bank in their meetings scheduled for today. However, prior to the commencement of the proceedings of these meetings, the bank received the resignation of Agarwal,” YES Bank said in a regulatory filing.

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