Succession buzz at Yes Bank
It’s now time for private sector banking giant Yes Bank to talk succession.india Updated: Feb 24, 2011 00:17 IST
It’s now time for private sector banking giant Yes Bank to talk succession.
Managing director and CEO Rana Kapoor, who is also the founder of the bank, has started thinking about his succession plan rather early. The 53- year-old Kapoor told Hindustan Times that the bank would be professionally run and one of the “existing leaders” would succeed him when the time comes. “Most certainly it will not be a family member because in this business, you cannot get family involved.”
Four senior executives could be in the running for the top post to succeed Kapoor.
Kapoor has three daughters, one of whom is working in the bank as a management trainee. The promoter and promoter group companies hold 26% stake in the bank.
“The idea is to make Yes Bank the professional bank of India and therefore one of our existing leaders would take up the top post,” Kapoor said.
Independent directors constitute 75% of the board, he said, a move aimed at making governance effective and transparent.
The bank unveiled its expansion plan, including its retail strategy, in April last year. As on December 31, 2010, the bank’s current account savings account portfolio stood at R4,000 crore. “We need to demonstrate our liability profile and by 2015, we want our CASA (current and savings account) to comprise 30% of the bank’s total deposit base,” he said.
The thrust is on having more current accounts than savings due to cost effectiveness, he said.
The bank plans 1,000 branches by 2015.
The bank’s focus till now has been on sectors such as agriculture, life sciences, infrastructure and other sunrise industries.