Yes Bank, the fourth largest private sector bank, on Thursday said OP Bhatt has tendered his resignation from his duties as an external expert of the search and selection committee with immediate effect citing that there may be a potential conflict of interest.

The nomination and remuneration committee of the bank while accepting Bhatt's resignation has recognised his guidance and inputs during his association with the search and selection committee as an external expert, Yes Bank said in a regulatory filing.

"Given the significant progress made by the search and selection committee with the support of Korn Ferry, over the past three meetings, (most recent being held on November 13, 2018), in its mandate to identify a suitable successor to Rana Kapoor, MD and CEO, Yes Bank, the nomination and remuneration committee has decided to continue with the existing members to complete the process as per the timeline communicated by RBI,” the bank said.

The five-member search and selection committee is headed by independent director Brahm Dutt. Other members include Lt General Mukesh Sabharwal (Retd) -independent director; Subhash Chander Kalia, non-executive non-independent director and TS Vijayan, former chairman of IRDAI.

Today, Yes Bank shares fell sharply, a day after non-executive independent chairman Ashok Chawla resigned. The shares fell as much as 9.1 percent to Rs 202.25, in their biggest single-day fall since October 26.

In September, the Yes Bank's board sought at least a three-month extension for Kapoor from the RBI beyond January 31, 2019, stating that finding a suitable successor is a "time consuming challenge"

The RBI refused to grant more time to Kapoor and asked the lender to appoint his successor latest by February 1, 2019. Kapoor has been at the helm of Yes Bank since its inception in 2004.

First Published:Nov 15, 2018 8:31 PM IST