Yes Bank’s audit committee chairman Uttam Prakash Agarwal on Friday resigned as an independent director, citing concerns regarding the deteriorating standard of corporate governance at the private lender.
In a letter to the regulators, Agarwal said, “There are serious concerns as regards to deteriorating standards of corporate governance, failure of compliance, management practices and the manner in which the state of affairs of the company are being conducted.”
Agarwal’s resignation comes at a time when the private sector lender is desperately scouting for capital to stay compliant with Reserve Bank of India’s capital norms. In December 2019, Yes Bank had said its board failed to reach a final decision on potential investors, though it favored a $500-million offer from Citax Holdings Ltd.
A leading newspaper reported that RBI had asked Yes Bank to re-examine the fit-and-proper status of Agarwal after it was found that he failed to disclose details of criminal cases filed against him. This comes in the wake of a whistleblower complaint questioning Agarwal’s fit-and-proper status which the bank received in November 2018, soon after he was appointed as an independent director.
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