Mumbai, May 17 -- Yes Bank on Friday said the appointment of former deputy governor of the Reserve Bank of India, R Gandhi, on the board is aimed at strengthening the bank. In a notice to stock exchanges, the private sector lender also said the appointment was in the best interest of all stakeholders.

"This is a very positive and constructive measure aimed at further strengthening the Board. This will not impede the smooth, independent and effective functioning of the bank in any way. The RBI is supportive of a strong and successful Yes Bank and we stand committed to serving the best interests of all our stakeholders," the notice added.

The clarification comes after RBI appointed Gandhi under sub-section (1) of Section 36 AB of the Bankin...