Yes Bank has significant changes in the risk framework to ensure that impending risks are identified, evaluated, and resolved before these convert into reputational risks, lender’s chief executive and managing director Prashant Kumar has said.

In a message to the bank’s shareholders in the annual report, Kumar said that “the tone has already been set by our reconstituted Board of Directors and leadership as well as independent control functions on enhancing governance and risk frameworks, translating into a culture of accountability to all our stakeholders.“

Its co-founder and former chief executive Rana Kapoor is alleged to have indulged in dubious loan and disclosure practices. The bank’s non-performing assets bloated up, and ultimately resulted in RBI and the government superseding its board in March.

A consortium of financers led by SBI undertook a Rs 10,000-crore bailout and Kumar, a former SBI hand, was appointed first as CEO.

“The Bank has made significant changes in the Risk framework to ensure that impending risks are identified, evaluated, and resolved before these convert into reputational risks. We have made foundational changes to strengthen our governance frameworks, identify and mitigate risks, with the objective of creating an authentic, empathetic Brand committed to ethical leadership and conducting business with integrity,” Kumar said.

“While there is still more work to be done to reach this goal, I assure you that the Board of Directors and I are striving to deliver on the expectations of our customers, employees, communities, regulators and shareholders,” he added.

The lender is on a journey of transformation into a “digital bank” and the Rs 15,000 crore capital raising through a follow-on public offer earlier this month.

“The successful completion of our Rs 15,000-crore follow-on public offering (FPO), India’s largest fund raise in the financial services sector, against an extremely challenging socio-economic backdrop is a testament to the faith reposed by our investors. This is one of the first but a very crucial step in the Bank’s journey of transformation into a ‘Digital Bank’ – a key milestone and a market endorsement of the efforts being made by the Bank,” he said.

Moreover, this has further strengthened bank’s foundation with reinforced liquidity, which is well above the required regulatory norms, he added.

“We look forward to building on this momentum,” he said.

Its non-executive chairman Sunil Mehta said a Rs 35,000 crore in special liquidity facility extended by RBI out of a total of Rs 50,000 crore has been repaid by the bank and the rest will also be paid in time.

Kumar said the bank will focus on sustained liability growth, balancing earnings between retail and wholesale, building and monetizing businesses and work on cost optimization.

In FY20, Kumar’s predecessor Ravneet Gill was paid an overall remuneration of Rs 5.94 crore, as per the annual report. In a notice to shareholders ahead of the annual general meeting (AGM), the bank has proposed total remuneration of Kumar at Rs 2.85 crore.