The Reserve Bank of India (RBI) allowed Yes Bank NSE 1.90 %'s former MD and CEO Ravneet Singh Gill to use the office-provided car and housing facility for up to three months post supersession of the board in March, the bank's annual report said. In a rare move, the Reserve Bank had superseded the board of the capital-starved lender and placed it under a moratorium.
Gill had demitted office as managing director and chief executive officer of Yes Bank on March 5 pursuant to RBI's supersession of the board. After this, a request was received from Gill for continuation of use of bank-provided car for a period of one month and accommodation facility for three months due to the national lockdown, Yes Bank said in its annual report for 2019-20.
The private sector lender said it then applied to the RBI, seeking permission for continuation of use of the requested facilities by Gill. It was granted permission through communications dated April 4, 2020 and May 22, 2020. "The Board of Directors at its meeting held on May 6, 2020, had approved the proposal as mentioned in the resolution for allowing Ravneet Singh Gill to use bank's provided car facility for the period of one month and accommodation facility for the period of 90 days commencing from March 7, 2020.
"The Board was of the view that the aforesaid perquisites will also be appropriate gesture and consideration for Ex MD & CEO of the bank to enable him to make alternative arrangements and orderly transition with regard to his accommodation and other benefits during the lockdown period due to COVID-19," the annual report said.
According to the Banking Regulation Act, any provision of conferring any benefit or providing any amenity or perquisite in any form, whether during or after the term of office of the MD and CEO is deemed as a provision relating to remuneration, Yes Bank said. However, any such provision relating to appointment and remuneration of the MD and CEO cannot take effect unless approved by the RBI, as per the Act, it added.
Gill, who previously looked after the India operations of German-based Deutsche Bank, took over the reins of Yes Bank from March 1, 2019. This was necessitated after RBI denied extension to the lender's MD and CEO Rana Kapoor. Kapoor is currently in judicial custody for alleged financial irregularities.
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