Proxy pushback against Yes Bank's board rights to SMBC

The plan allows the Japanese lender to put its nominee on Yes Bank's key board committees

- Varun Sood

Yes Bank Ltd's decision to give the Japanese Sumitomo Mitsui Banking Corp (SMBC) the right to place its nominee directors on the lender's key board committees, including the audit and nomination and remuneration panels, has prompted two proxy advisory firms Institutional Investor Advisory Services India Ltd (IIAS) and Stakeholder Empowerment Services (SES) to recommend investors to vote against the proposal.

IIAS recommendations to investors to reject the proposal that gives Yes Bank's two largest investors (including State Bank of India) special rights will test the resolve of shareholders as the voting for the proposal starts on 18 August and ends on 20 August, according to two investors. Yes Bank is expected to declare the results after the Annual General Meeting on 21 August.