Another top banker faces corruption charges; Yes Bank Chairman resigns

Yes Bank's Chairman, Ashok Chawla has resigned citing personal reasons after the CBI mentioned his name in the Aircel-Maxis case chargesheet. Reacting to this development, the stock tanks by 7 per cent on Thursday.

Ashok Chawla, Non-Executive Independent Part-Time Chairman has resigned from Yes Bank's Board with immediate effect, the bank informed in a release filed to the exchanges on Wednesday night. The release added that a new Chairman will be appointed with RBI's approval in the due course of time.

The Central Bureau of Investigation (CBI) is probing Chawla and 18 others for alleged corruption in the Aircel-Maxis case. The bank is going through a tough time with the RBI questioning its audit practices while refusing to extend Rana Kapoor's tenure as Yes Bank CEO.

Also, in a filing the bank announced the appointment of Uttam Prakash Agarwal as Additional Director (Independent), designated as Chairman Audit Committee for a period of 5 years, subject to shareholders approval. Agarwal will replace Vasant Gujrati.

At 12:34 hours, the stock of Yes Bank was being punished by the market and was trading at Rs. 206.45 per share, down 7.21 per cent on BSE.