Yes Bank's board on Wednesday backed Rana Kapoor's re-appointment as the managing director and chief executive officer for a three-year term, said sources close to the development.

The development came after the Reserve Bank of India’s (RBI), in its letter, had sought an explanation from the banks’ board on the rationale and terms of Rana Kapoor’s appointment.

The board sent its written response to the regulator after a meeting held on Tuesday.

Kapoor’s current tenure as the managing director and CEO will come to an end on August 31.

Earlier in June, the board and shareholders had approved Kapoor's re-appointment for three years, but the proposal has been pending with RBI since then.

The board of Yes Bank had considered and approved the re-appointment of Rana Kapoor in a meeting held in April and the shareholders too ratified the appointment in the annual general meeting of the company held in June this year. Rana Kapoor has been the CEO of the bank since its inception in 2004.

The RBI has not explicitly indicated to the bank as to why it sought a re-affirmation. A source, however, said that the response sent to RBI merely states the reasons and terms of Kapoor’s appointment.

However, a query sent to Yes Bank regarding the news of Rana Kapoor’s re-appointment did not elicit a response.

Sources added that the RBI approval for Kapoor's re-appointment last time had come just five days prior to the expiry of his term.

First Published:Aug 29, 2018 2:38 PM IST