Former RBI Deputy Governor R Gandhi and professor Ananth Narayan Gopalakrishnan have ceased to be additional directors on the board of Yes Bank. This follows an alternate board constituted by Yes Bank as per the Reserve Bank of India’s (RBI) directive to the bank, dated 20 July 2022.

The RBI has communicated that "in view of the alternate board since constituted by the bank, it is now advised that R Gandhi and Ananth Narayan Gopalakrishnan shall cease to be additional directors on the board of Yes Bank Limited with immediate effect," Yes Bank said in a regulatory filing on Wednesday.

Earlier on 17 March, the RBI directed the bank regarding the extension of terms of appointment of Gandhi, former Deputy Governor, and Gopalakrishnan, Associate Professor, SP Jain Institute of Management and Research, as additional directors on the board of the Yes Bank for a further period of one year with effect from 26 March 2022 to 25 March 2023, or till further orders, whichever was earlier.

Last month, the private sector lender had informed about forming an alternate board as it had come out of the reconstruction scheme and returned to profit in FY22 after witnessing heavy losses for two consecutive years.

The central government notified the Yes Bank Reconstruction Scheme on 13 March 2020, after the private lender faced a governance crisis, triggered by mismanagement at the top level.

The reconstruction scheme helped the bank in achieving significant progress in record time and the turnaround with FY22 as the full-year profit for the bank at Rs 1,066 crore.

The bank had posted heavy losses in FY20 and FY21.

The nine-member new board of the bank comprises current MD and CEO Prashant Kumar, Atul Malik, Rekha Murthy, Sharad Sharma, Nandita Gurjar, Sanjay Kumar Khemani, Sadashiv Srinivas Rao, T Keshav Kumar and Sandeep Tewari.

Yes Bank stock closed Wednesday at Rs 13.61 apiece on BSE, up 0.59% from the previous close.