Yes Bank Removes Financial Markets Head Amid Ownership Restructuring
Yes Bank relieves long-serving executive Amit Sureka from his position. State Bank of India plans to divest its 24% stake, signaling potential exit of major stakeholders who rescued the bank in 2020.
In a significant development, Yes Bank, a prominent Indian private lender, has announced the removal of Amit Sureka from his role as the country head of its financial markets division. The bank, however, has not provided any explanation for this decision.
Sureka, who had been with Yes Bank since 2005, was based at the lender's Mumbai branch. His nearly two-decade tenure with the bank came to an abrupt end on August 27, 2024.
This move comes at a time when Yes Bank is undergoing substantial changes in its ownership structure. The bank, which was rescued from collapse in 2020, is currently seeking a new promoter. Indian lenders collectively own a 34% stake in Yes Bank, with the State Bank of India (SBI) holding the largest share at 24%.
SBI has expressed its intention to divest its entire 24% stake in Yes Bank by the end of March 2025. This decision could potentially pave the way for other stakeholders, including Life Insurance Corporation of India, HDFC Bank, and ICICI Bank, to exit their positions as well.
It's worth noting that these stakeholders played a crucial role in saving Yes Bank from collapse in 2020. The rescue operation was one of the largest bank bailouts in Indian history, highlighting the significance of Yes Bank's stability to the country's financial sector.
Yes Bank's journey has been marked by several challenges and transformations. Founded in 2004 by Rana Kapoor and Ashok Kapur, the bank faced a severe crisis in 2020 when the Reserve Bank of India (RBI) had to intervene due to its deteriorating financial condition. This crisis was partly attributed to the bank's exposure to troubled sectors such as real estate and shadow banking.
The bank's recovery process has been closely monitored by both the RBI and investors. Since its rescue, Yes Bank has been focusing on improving its asset quality, reducing non-performing assets, and strengthening its risk management practices. The bank has also shifted its focus towards retail banking and digital services to rebuild its business.
"We confirm that Amit Sureka has been relieved from his duties as the country head of our financial markets division. We thank him for his contributions to the bank over the years."
The ongoing restructuring of Yes Bank's ownership and management highlights the challenges and changes in India's banking sector. It also serves as a reminder of the importance of robust corporate governance and risk management in financial institutions.
As Yes Bank continues its journey of recovery and transformation, the financial industry will be watching closely to see how this once-troubled bank navigates its future path and whether it can regain its former standing in the Indian banking landscape.
