The announcement came during a conference call with investors and analysts following a heavy plunge in the bank's share price over the past few sessions. Monga was with the bank since inception in 2004.
"Rajat has decided to move on. For the past two years, he has been carrying a lot of loads and needed some time off. So he has decided to leave," said Gill.
The bank scrip had dipped to historic lows and lost 22 per cent of its value just on Tuesday to close at a low Rs 32, down from a high of Rs 404 in August 2018 when the Reserve Bank of India asked main promoter Rana Kapoor to leave the bank.
Gill's comments before the markets opened lifted the stock by over 27 per cent on the BSE.
Meanwhile, Morgan Credits Pvt Ltd (MCPL) and Yes Capital India Ltd (YCPL) -- the promoter entities of private lender Yes Bank -- have expressed dejection over Reliance Nippon Life Asset Management's (RNAM's) decision to invoke and sell pledged shares of Rana Kapoor through its debenture trustee Milestone Trusteeship.
"These were pledged by our father Rana Kapoor to support the borrowings of MCPL, a company owned by his three daughters for investing in start-up ventures in our capacity as women entrepreneurs," said the statement issued by MCPL and YCPL.
"We are highly dejected that our family shareholding in Yes Bank was sold at such dismal price levels, despite the bank having created long-term shareholder value and over 20,000 jobs during the last 15 years."
"As long-term shareholders and firm believers in the bank's future value creation potential, we do not consider these valuations to be reflective of an otherwise fundamentally solid bank with significant franchise value," added the statement.