YES Bank New MD & CEO Ravneet Singh Gill

The bank had to look for a new CEO when Reserve Bank of India (RBI) broken the term of creator and CEO Rana Kapoor
YES Bank New MD & CEO Ravneet Singh Gill

Yes Bank Limited is India's fourth largest private sector bank, founded by Rana Kapoor and Ashok Kapur in 2004.It primarily operates as a corporate bank, with retail banking and asset management as subsidiary functions. As on 31 December 2017, Yes bank had 1050 branches and 1724 ATMs in India. It had a balance sheet size of 250,000 crore and Gross NPA of 1.72%, making it the fourth largest private sector bank in India.

YES Bank – has got a new MD & CEO Ravneet Singh Gill. The bank had to look for a new CEO after the Reserve Bank of India (RBI) ended the term of creator and CEO Rana Kapoor.

Ravneet Singh Gill  currently heading Deutsche Bank India as the managing director and chief executive officer. He will succeed Rana Kapoor, whose term ends on January 31. According to Bloomberg profile, Ravneet Gill has been the Chief Executive Officer of India at Deutsche Bank AG, India since August 1, 2012. Gill has a rich experience over 3 decades in structured financing, foreign exchange, transaction banking, risk management and private banking. As per Ravneet Gill's LinkedIn profile, he is Delhi's Modern School's alumnus. Gill earned his post-graduation course degree from Delhi's Hindu College.

Challenges new MD & CEO Gill faces:

i) Change from creator specialized to pure expert

The big change after Gill takes over is the change of power and control from the founder specialized to pure expert. The bank's co-founder Ashok Kapur died some years ago in a terrorist attack. Later, Rana Kapoor alone scaled up the bank's business. Today, the families of Rana Kapoor and Ashok Kapur are the promoters and largest shareholders in the bank. The market has seen how hard it is to separate the founder from the company. Gill has to administer the expectations of promoters, regulators and the investors.

ii) Tries to build a new team

Whenever a new CEO comes, he tries to build his own team. The new MD will surely build a team to balance up the retail and other business. There are previously information of trade head Pralay Mondal departure the bank to join Axis Bank.

iii) Raising equity capital

The bank will have to raise equity capital to hold up the future growth. While the generally capital is quite comfortable, the bank has to raise equity capital very soon. The stock price has previously taken a beating in the market post the asset quality departure and the exit of Rana Kapoor. Gill's top priority will be to stabilize the bank, prove his mantle and then raise the capital once the share price moves up.

iv) Asset excellence departure

YES bank faced huge deviation in the NPAs reported by it and the NPAs as per the RBI's appraisal. Gill has to see whether sufficient provisions have been made in case of hurried loans to bring the clear picture.

v ) Scaling up retail assets and liabilities

The bank is already listening carefully on increasing the trade assets as well as liability. The retail advances are around 15.2 per cent, while CASA is about 33.3 per cent. For instance, Kotak Bank has a retail collection of over 40 per cent with CASA of 50.8 per cent. Retail loans are more stable with low NPAs. Every bank today is listening carefully on increasing the retail banking.

Related Stories

No stories found.
logo
Since independence
www.sinceindependence.com