Yes Bank AoA Changes Approved by RBI for SMBC, SBI Nominees
Why in the news
Yes Bank said the Reserve Bank of India had cleared amendments to its Articles of Association (AoA). The change lets the bank seat nominee directors, following the planned stake purchase by Sumitomo Mitsui Banking Corporation (SMBC) and SBI’s involvement.
Key facts
| Nominating party | Directors |
|---|---|
| SMBC | 2 |
| SBI | 1 |
- Approving authority: RBI.
- Instrument changed: the bank’s Articles of Association.
About the Articles of Association
- A legal document setting a company’s internal rules, powers and governance structure.
- It states how the firm is run, spells out duties of directors, shareholders and management, and governs decisions, meetings and board appointments.
- For a private bank, any alteration in board structure, capital or director powers needs RBI approval through an AoA amendment.
Exam angle
- Document amended: Articles of Association.
- Approving regulator: RBI.
- Nominee split: SMBC 2, SBI 1.