WILL NEVER SELL YES BANK SHARES, SAYS RANA KAPOOR

Business Standard - - FRONT PAGE - NIKHAT HETAVKAR

Rana Kapoor, MD & CEO at YES Bank, re­it­er­ated his com­mit­ment to the bank and its stake­hold­ers on Fri­day. In a series of tweets, Kapoor said his YES Bank shares were in­valu­able. He added he would never sell his shares even af­ter he demits of­fice. I will be­queath my YES Bank pro­moter shares to my three daugh­ters and sub­se­quently to their chil­dren, with a re­quest in my will stat­ing not to sell a sin­gle share, as di­a­monds are for­ever,” he added.

Rana Kapoor, man­ag­ing di­rec­tor (MD) and chief ex­ec­u­tive of­fi­cer (CEO) at Yes Bank, re­it­er­ated his com­mit­ment to the bank and its stake­hold­ers on Fri­day. In a series of tweets, Kapoor said his YES Bank shares were in­valu­able. He said he would never sell his shares, even af­ter he demits of­fice as the pri­vate lender’s MD and CEO.

“I will be­queath my YES Bank pro­moter shares to my three daugh­ters and sub­se­quently to their chil­dren, with a re­quest in my will stat­ing not to sell a sin­gle share, as di­a­monds are for­ever,” he said.

Ear­lier this month, the Re­serve Bank of In­dia (RBI) cut Kapoor’s three-year term to four months end­ing Jan­uary 31, 2019. How­ever, the pri­vate

lender plans to seek Kapoor’s reap­point­ment till the next an­nual gen­eral meet­ing in Septem­ber 2019, ac­cord­ing to an ex­change fil­ing on Tues­day.

The bank’s stock has been fall­ing dras­ti­cally in Septem­ber due to un­cer­tain­ties re­gard­ing suc­ces­sion plans. While the

bank’s stock price hit an all time high of ~393.9 on Au­gust 20, it closed at ~183.45 a share on Fri­day.

The bank’s cur­rent mar­ket value stands at ~484.6 bil­lion, while that of Kapoor and his fam­ily is pegged at ~45.2 bil­lion. The mar­ket value of Kapoor and his fam­ily’s stake has seen an ero­sion of ~51.7 bil­lion from Au­gust 20 to date.

As pro­mot­ers, Kapoor and his fam­ily own 10.66 per cent in the bank, as of June 2018. Kapoor in­di­vid­u­ally owns 4.34 per cent of the shares in the bank. His three daugh­ters — Raakhe Kapoor Tan­don, Radha Kapoor Khanna and Roshni Kapoor — are di­rec­tors of hold­ing com­pa­nies, YES Cap­i­tal and Morgan Credits, which own 3.28 per cent and 3.05 per cent, re­spec­tively, in YES Bank.

The bank pro­moted two se­nior lead­ers, Ra­jat Monga and Pralay Mon­dal, as ex­ec­u­tive di­rec­tors and set up a com­mit­tee to search for Kapoor’s suc­ces­sor at a board meet­ing on Tues­day.

On Mon­day, the bank had sent out a me­dia state­ment say­ing Kapoor would fol­low the de­ci­sion of the board and the RBI in an at­tempt to quell ru­mours that he re­sorted to le­gal av­enues to fight the reg­u­la­tor’s stand.

The Na­tional Stock Ex­change had sought clar­i­fi­ca­tions from the bank af­ter it had re­ceived a let­ter mak­ing al­le­ga­tions of win­dow dress­ing of non-per­form­ing as­sets, in­flu­enc­ing share price as well as us­ing Kapoor’s daugh­ters’ trust to “con­duit to un­due ben­e­fits for credit ex­po­sure”.

The bank de­nied these al­le­ga­tions in an ex­change fil­ing on Thurs­day.

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