Rana Kapoor's Exit: What It Means For Banks

YES Banks Kapoor is the latest to join the list of top bankers who will be vacating their posts. What does this mean for the bank in particular and the sector in general?

- Jui Mukherjee

THE CHURN IN India’s banking sector never seems to end. In the latest addition to a string of top-level management changes in banking, YES Bank managing director and CEO Rana Kapoor is set to vacate his post next year after the Reserve Bank of India (RBI) denied him a full term and allowed him an extension of only four months until January 2019.

The RBI didn’t give a reason for the move against Kapoor, one of the country’s most high-profile bankers. As the bank searches for Kapoor’s successor, the uncertainty has created some jitters about its future performance. After all, Kapoor, who began his career in 1980 with Bank of America, has been seen as a pillar of stability for YES Bank since he co-founded the bank in 2004. Under his leadership, investors saw the bank’s stock shoot up from 12.16 on July 12, 2005 when it listed to a record high of 404 in August this year.