Rana Kapoor, Founder of Yes Bank, Now Left with Just 900 Shares of the Lender

Yes Bank Ltd, in notification to stock exchanges on Tuesday, reported about a change in shareholding in the company, which showed that promoter and former chief executive Rana Kapoor has been now left with just 900 shares of the bank that he co-founded 15 years ago.

On November 13-14, promoter group firms Yes Capital (India) Pvt. Ltd and Morgan Credits Pvt. Ltd, along with Rana Kapoor, sold their remaining 0.8% stake, or 20.42 million shares, in the open market, the company notified. After the transaction, Kapoor and the promoter entities now hold 900 shares in the private bank.

After the announcement, Yes Bank shares rose as much as 2.9% in intra-day trade on Wednesday. At 11:42 am, the stock was trading 0.9% higher at Rs 64.70.

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

Promoter firm Yes Capital had also sold 2.16% stake in open market in September 2019 to pare some of its debt. Lenders to Yes Capital and Morgan Credits had also invoked pledged shares in the same month, diluting Rana Kapoor’s stake further.

For those unaware, Rana Kapoor’s family owned stake in Yes Bank directly and through investment firms Yes Capital and Morgan Credits. His daughters Rakhee, Roshni and Radha are directors of the investment companies.

Notably, Yes Bank’s other co-promoters Madhu Kapur and her family-owned entitiy Mags Finvest Pvt. Ltd together continue to hold 8.33% in the Bank.

In a separate development, Yes Bank on Tuesday disclosed divergence in reporting of non-performing assets (NPAs) at Rs 3,277 crore for the financial year 2018-19.

The Reserve Bank of India (RBI) had assessed gross NPAs of Rs 11,159 crore, of which the bank disclosed NPAs of Rs 7,882 crore, resulting in a divergence of 41%. The divergence in net NPAs stood at Rs 2,299 crore, which was 51% of the net NPAs reported by the bank.

Yes Bank also said its board of directors will meet by the end of November to finalize capital raising plans.