Rana Kapoor, Rabo India Finance's chief executive officer, is in the process of putting his papers in the firm.

In a change of plan, he will take over as the managing director and chief executive officer of the Yes Bank -- the bank jointly being promoted by him.

This is a reversal of the stand taken earlier where Kapoor was slated to be one of the co-promoter directors of the bank and an external MD was to be appointed for the bank. Ashok Kapur, the other promoter of the bank, will be the non-executive chairman of the bank.

Sources said that reversal in decision was taken after discussions with the promoters and other venture capital firms.

Rabo India has employed an executive search firm for identifying the new chief. Sources said that one of the candidates who have been short-listed is Atul Sahasrabuddhe, the former CEO of the ING Bank. Rabo India is now the 100 per cent arm of the Rabo group.

The Indian promoters -- Rana Kapoor and Ashok Kapoor -- will have 26 per cent stake each in Yes Bank, Rabobank International would have 20 per cent, 3 per cent would be offered to new directors of the new bank, while private equity players -- CVC Capital Partners, ChrysCapital and the Russell Asian Infrastructure Fund -- will hold the remaining 25 per cent stake.

The new bank will have an initial capital of Rs 200 crore (Rs 2 billion). Russell Asian Infrastructure Fund and ChrysCapital have taken a 7.5 per cent stake each in Yes Bank while CVC Capital Partners has taken a 10 per cent stake in the bank.

The investors have paid a premium of between Rs 13-15 per share for the investment. Post IPO, which would be in April-May 2004, the Indian promoters' stake would come down to below 40 per cent.

The bank had appointed search firm Korn Ferry to fill in the top positions. The Reserve Bank of India had in July given the promoters a four month extension till November 30 for setting up a bank.

The new bank is likely to start operations by January 2004 and will be headquartered in Nehru Centre, Worli, Mumbai.