The Reserve Bank of India (RBI) on Wednesday said Rana Kapoor’s term at Yes Bank as managing director (MD) and chief executive officer (CEO) will end in January 2019, it said in a statement.

"Reserve Bank of India has vide letter dated September 17, 2018 received today, intimated that Shri Rana Kapoor may continue as the MD & CEO till 31 January 2019, and the Board of Directors of the Bank are scheduled to meet on September 25,2018 to decide on the future course of action," Yes Bank said in a regulatory filing.

Citing governance and regulatory issues, RBI has directed the private sector lender to search for a successor in the interim.

On August 30, RBI said Kapoor can continue as MD and CEO until further notice.

In June this year, Yes Bank's shareholders had approved the re-appointment of Kapoor as the chief executive and managing director for three years, subject to final approval from the RBI.

Yes Bank is India's fourth-largest private bank by assets, and among the most profitable in terms of return on assets.

Kapoor was among the founding team of Yes Bank, along with Ashok Kapur who died in 2008. As a promoter, Kapoor and his family own a 10.66 per cent stake in the bank. He has been the bank's CEO since 2004.

Prior to establishing Yes Bank, Kapoor was CEO and Managing Director, and main Managing Partner of Rabo India Finance (RIF) (a corporate finance and investment banking organisation).

First Published:Sept 19, 2018 7:46 PM IST