Yes Bank's estranged promoters - Rana Kapoor and Madhu Kapur - are likely to settle their decade-old feud and strike a peace deal soon, sources familiar with the matter told CNBC-TV18.

The meeting between the two has been arranged by Yes Bank's CFO Rajat Monga, one of the few being considered by the bank to succeed Rana Kapoor when he demits office on January 31, 2019, said sources.

Madhu Kapur is the wife of late Yes Bank co-founder Ashok Kapur, who was killed in the 2008 Mumbai terrorist attack. Madhu Kapur has been locked in a legal battle with the Yes Bank CEO for the right to nominate directors to the bank’s board.

Madhu Kapur and her daughter had petitioned in the Bombay High Court in 2013 about their lack of say in the appointment of directors and wanted the court to uphold their right to jointly nominate directors. Kapur also wanted Yes Bank board to accept the nomination of Shagun Kapur, daughter of Madhu Kapur, to the board but this was rejected by the bank, citing her lack of qualifications.

The decision to recommend Shagun Kapur as a director may be announced by the first week of December, sources said.

Yes Bank declined to comment on the story while Shagun Kapur was not reachable.

The meeting between the two is seen as an attempt by Rana Kapoor to normalize relations before he steps down. Rana Kapoor is trying for an extension following the Reserve Bank of India's (RBI) recent directive to restrict his tenure till January.

The private-sector lender has written to the RBI to allow Rana Kapoor to continue as MD & CEO till April 30, 2019. It is, however, unclear if the central bank will accede to this request.

Yes Bank on Thursday appointed US-based headhunter Korn Ferry to assist an expert panel searching for a successor to outgoing MD and CEO Rana Kapoor.

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First Published:Oct 12, 2018 1:38 PM IST