Once a celebrated banker and maverick, Rana Kapoor is now at the receiving end. Yes Bank, the bank that he founded in 2004 and exited in 2018, is in a mess. The private sector bank with over 18,000 employees is now in deep crisis after the Reserve Bank of India put a cap on withdrawals. The crisis has been brewing for some time now.
On 28 September, 2018, when Rana made an exit, he made it clear that he would continue to hold the promoters' share as these are of emotive value.
"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. 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!!," the 62-year-old had then tweeted.
Married to Bindu Kapoor, the couple have three daughters, Radha, Rakhee and Roshini. Kapoor was born and raised in New Delhi. He completed his schooling from Frank Anthony Public School in 1973 and went on to earn a bachelor's degree in economics from Shri Ram College of Commerce (1977).
He then did an MBA degree from Rutgers University in New Jersey, US (1980). Kapoor received an honorary fellowship from All India Management Association (AIMA), the President's Medal from Rutgers University, an honorary doctorate from G B Pant University of Agriculture & Technology.
A career banker, he had joined Bank of America (BoA) as a management trainee in 1980. He eventually went on to head the wholesale banking business which included several assignments in Asian countries. Kapoor worked at BoA for about 16 years, till 1996, managing corporate, government and financial institution clients.
In 1996, Kapoor joined ANZ Grindlays Investment Bank (ANZIB) as general manager & country head. In 2003, Kapoor, his brother-in-law Ashok Kapur , got a banking licence by the RBI to set up Yes Bank.
At one point in time, Rana Kapoor held 26% stake in Yes Bank, Ashok Kapur held 11%, and Rabobank International held 20% stake. Ashok Kapur was killed in the 2008 Mumbai terror attack. In 2005, Kapoor was named Ernst & Young's Start-up Entrepreneur of the Year. The bank has risky loans and in the process has accumulated NPAs. In September 2018, Yes Bank board announced that they had ordered Kapoor to step down from his CEO position in January 2019.