Ashok Chawla resigns from the position of non-executive chairman of Yes Bank

Former bureaucrat Ashok Chawla resigned from his position of non-executive chairman of Yes Bank on Wednesday, the private sector bank said.

Mr Chawla apparently offered to quit as controversy was being made on his continuance on the board of directors following his name appearing in a CBI charge-sheet in the Aircel-Maxis case.

The bank said in a regulatory filing that Shri Ashok Chawla, Non-Executive Independent Part-Time Chairman, has tendered his resignation from the Bank’s Board, with immediate effect.¬† It mentioned the reason that during its current transition period, the Bank would need a Chairman who could devote more time and attention.

It said further that it in due course the bank would announce the appointment of a chairman after approval of the Reserve Bank of India.

It is believed that representations were being made by shareholders as well as stakeholders to the bank and regulators such as SEBI questioning his continuance on the Yes Bank board after he was named in a charge-sheet filed in the Aircel-Maxis case by the CBI in July.

Mr Chawla had also worked as chairman of fair trade regulator Competition Commission of India.

Following representations, Yes Bank’s nomination & remuneration committee had decided to seek a legal opinion on his continuance as a chairman and it was suggested that the bank should¬† get an opinion of the RBI on Mr Chawla’s issue, sources said.

The bank later sought the RBI’s opinion. However, no reply was received and Mr Chawla himself offered to quit in the interest of the bank.

The bank’s shares closed 1.37 per cent lower at Rs. 222.5 on the BSE.

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