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Rana Kapoor left with negligible stake in Yes Bank as promoter firm offloads shares

Kapoor, who once directly owned 7.41 percent at the end of the bank’s first financial year of full operations in March 2006, was left with 3.92 percent stake that he owned in personal capacity until last month. In October, Kapoor lost this chunk as the pledged shares were invoked and sold in open market.

November 19, 2019 / 11:15 PM IST
 
 
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Yes Bank’s promoter and former chief executive Rana Kapoor has been left with the indirect ownership of only 900 shares in the private lender that he co-founded 15 years ago.

On November 13-14, promoter firm Yes Capital, owned by the Kapoor family, shed 0.8 percent or 20.42 million shares in the open market, leaving only 900 shares to its name.

Yes Bank reported the change in shareholding via a notification to the exchanges on November 19.

Yes Bank

Kapoor, who once directly owned 7.41 percent at the end of the bank’s first financial year of full operations in March 2006, was left with 3.92 percent stake that he owned in personal capacity until last month. In October,  Kapoor lost this chunk as the pledged shares were invoked and sold in open market.

In September 2019, Yes Capital had sold 2.16 percent stake in open market. Lenders to Yes Capital and Morgan Credits had also invoked pledged shares in the same month, diluting his stake further.

Yes Bank has been grappling with various issues from piling up of non-performing assets (NPAs) to falling capital adequacy.

Rana Kapoor stepped down from the helm of the bank in January 2019, having held it since its inception. The lender appointed Ravneet Gill as the CEO as the RBI declined to renew Kapoor’s term.

Yes bank has been under regulatory pressure since the RBI assessed an under-reporting of bad loans by the private lender year after year.

Yes Bank reported divergence of Rs 3,277 crore in reporting of gross NPAs and Rs 2,299 crore in net NPAs for the financial year 2018-19. The bank had reported divergence of Rs 6,355 crore in 2016-17 and Rs 4,176 crore in 2015-16.

The private lender, which had informed exchanges about receiving a binding investment offer of $1.2 billion from a global investor last month, said that it will finalize capital raising plans by the end of November 2019.

Yes Bank’s capital adequacy ratio fell to 16.30 percent as of September 30, 2019, down from 17 percent a year ago. The lender reported NPA ratio of 7.39 percent and provisioning coverage ratio at 43.1 percent at the end of second quarter this financial year.

Moneycontrol News
first published: Nov 19, 2019 11:02 pm

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