The Reserve Bank of India (RBI) has allowed Yes Bank Ltd Chief Executive Rana Kapoor to continue in the role until Jan. 31, 2019, the private-sector lender said on Wednesday.
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.
Media reports have previously said the RBI has been enquiring about Yes Bank's regulatory compliance.
Its board of directors will meet on Sept. 25 to decide on the future course of action, it said in a statement http://bit.ly/2Dd9TqT.
Yes Bank did not elaborate on the RBI's directive when contacted by Reuters. The RBI did not immediately respond to a request for comment.