In the world of finance, the spotlight is once again on YES Bank as the board of directors has made a significant decision to extend the tenure of Chief Risk Officer Sumit Gupta for a period of three months. This move, effective from September 1, 2023, comes as Gupta’s initial appointment as Chief Risk Officer in August 2020 for a three-year term approached its conclusion.
With regard to this development, YES Bank stated, “With reference to the exchange disclosure dated August 28, 2020 (enclosed herewith), the bank had announced a change in Chief Risk Officer, with the appointment of Mr. Sumit Gupta for a period of 3 (three) years. The board of directors of the bank has now approved the continuation of Mr. Sumit Gupta as the Chief Risk Officer of the bank for a period of three months effective from September 01, 2023.”
In a separate statement, YES Bank addressed certain news reports that erroneously referred to JC Flowers ARC as the bank’s asset reconstruction arm. In response, the bank clarified its association with JC Flowers ARC, stating, “The bank would like to clarify that post the sale of the identified loan portfolio to JC Flowers ARC in December 2022 (disclosed earlier on December 17, 2022), the bank has no further role in settlements/negotiations being undertaken by JC Flowers ARC.”
The clarification emphasized that YES Bank’s involvement with JC Flowers ARC is limited solely to its current shareholding, which stands at 9.9 percent.
Regarding potential future developments, YES Bank stated, “In the usual course of business, the bank may receive redemptions in the security receipts portfolio pursuant to the settlements/resolutions undertaken by JC Flowers ARC. The Bank shall keep the Exchange(s) duly informed of all such material redemptions/developments as required under Regulation 30 of Listing Regulations.”
The news of Sumit Gupta’s tenure extension and the clarification regarding YES Bank’s relationship with JC Flowers ARC has garnered significant attention in the financial sector. On the trading front, YES Bank’s stock exhibited notable activity, surging by 7.32 percent to close at Rs 18.61 on the preceding trading day. Investors and stakeholders will continue to closely monitor developments related to YES Bank as it navigates its strategic path and addresses key operational matters.