Seven days after the RBI superseded the YES Bank board, the government, notifying the YES Bank Reconstruction Scheme 2020, dissolved the office of administrator, appointing new board members of the private lender. While notifying the YES Bank reconstruction scheme, the Centre has said the new board of directors will be led by Prashant Kumar, former chief financial officer and deputy managing director of State Bank of India. He has also been appointed as Chief Executive and Managing Director of the private lender. Kumar was earlier appointed as the YES Bank administrator.
India’s aspirational growth of 6-7% in the future highly depends on a large amount of risk capital from domestic investors and a strong corporate governance code, said Kotak Mahindra’s MD, Uday Kotak at a panel discussion on guidelines for corporate governance to India Inc. organized by the Confederation of Indian Industry.
Only 43 of the 131 companies that have had a new CEO in the past three years have posted positive shareholder return to date.
Crisil has given Airtel the highest rating of ‘CRISIL GVC Level – 1’ for its Corporate Governance Standards. For giving the ratings, the company’s competency of the board of directors, outstanding Corporate Governance practices and comparatively high disclosure standards have been considered. Another feature that added brownie points to Airtel’s Board Effectiveness is its ability to maintain market share despite fierce competition in the Indian telecom industry over the last three years.
Crisil also pointed out that Airtel has been holding an Independent Directors only session, which is presided by a Lead Independent Director, before every board meeting for more than a decade.So, this provides Independent Directors a platform to shares their views openly in front of Board and Management after identifying the areas where they need more clarity or information. Also, the company’s Independent Director’s can meet the statutory auditors without the presence of executive management.
This report by India Ratings & Research (A Fitch Group Company) is on the approach to assessing the impact of governance practices on issuers and also identifying the issuer which reflects the specified characteristics and inclusion of that into the ratings.
Hence, the key rating drivers were given such as ‘Issuer Specific Assessment’; ‘Issuer specific factors’ and ‘Credit Protection Assessment’. Also, Rating Analysis based on – ‘Issuer Specific Corporate Governance Characteristics’, ‘Board Effectiveness’, Management Effectiveness, etc. were also given in the report.
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