Rajat Monga, group president and former Chief Financial Officer ( CFO) of Yes Bank Ltd., has resigned weeks after selling his stake for ₹8 cr, amid continued restructuring at the lender under a new management that took charge earlier this year. Monga will be “moving on” and the Chief Executive Officer Ravneet Gill said, in a conference call .
Whether his resignation is effective immediately remains unclear. The resignation ends his association with the private lender since its inception in 2004. Monga, who was also considered for the CEO’s position, had divested his entire stake in the bank for ₹8.22 crore during September 18-20. The stock has been under tremendous selling pressure as promoters are offloading shares due to personal deleveraging
The problem started since long when, the shareholding structure at Yes Bank witnessed a churn with founder Rana Kapoor in talks to sell a part of his stake. Kapoor is discussing a stake sale with One97 Communications, the promoter of financial services firms Paytm and Paytm Payments Bank. In case such a deal does take place, it would require the Reserve Bank of India’s approval since One97 holds a licence for a payments bank.
Following the recent invocation of pledged shares by lenders and offloading of stake by various promoter entities, co-promoter Rana Kapoor’s stake in the bank has slipped below 1 per cent. On Tuesday, a PTI report claimed Reliance Nippon Asset Management Company had also directed its trustees to sell the remaining shares pledged by Rana Kapoor as a collateral.