YES Bank board spurns bid of founder's wife

YES Bank board spurns bid of founder's wife

Private sector lender Yes Bank’s board has declined to nominate Shagun Gogia as a nominee director, a development that is set to prolong the bitter tussle between the promoter families.

Gogia is the daughter of bank co-founder Ashok Kapur, who was killed in the November 2008 terror attacks on the city. She was nominated by her mother Madhu Kapur as the legal heir to her deceased husband’s 12 per cent stake in the bank. The board’s decision was taken at its June 27 meeting, which was convened as per an order of the Bombay High Court.

“The board of directors has unanimously agreed that the recommendation of Shagun Gogia made by you should not be accepted,” the bank said in a letter addressed to Madhu.
When contacted, the bank’s spokesperson refused to comment saying “the matter is subjudice”.

The letter says the submissions made in support of Gogia’s candidature were extensively deliberated by the board “in accordance with the terms of Reserve Bank prescriptions” and after considering the composition of the past and current board of the bank.

“The Board also evaluated the submissions considering the past and current composition and profile of the Board of the Bank, and current composition of the Boards peer bank (Kotak Mahindra Bank) and the three largest private banks,” the letter said.