YES Bank said on Wednesday Ashok Chawla has resigned as the non-executive part-time chairman with immediate effect.
The private-sector lender informed stock exchanges that Chawla resigned as he felt the bank would need a chairman “who could devote more time and attention” during the current transition period.
The move comes less than two months after the Reserve Bank of India refused to extend YES Bank CEO Rana Kapoor’s tenure.
Kapoor will continue as the CEO until the end of January 2019. YES Bank shareholders had voted in June to extend Kapoor's term as CEO and managing director for three years, but the lender had been awaiting approval for the plan from the RBI.
Chawla had taken over as the bank’s part-time chairman in October 2016. An Indian Administrative Service office of the 1973 batch, Chawla has held several senior positions in the government, including as the finance secretary. He was also previously the chairman of the Competition Commission of India.
Chawla’s resignation comes after the Central Bureau of Investigation in July named him in a chargesheet related to the corruption case involving telecom operator Aircel and its Malaysian investor Maxis.