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    Yes Bank promoter entities dejected by RNAM's decision to sell remaining pledged shares of Rana Kapoor

    Yes Bank promoter entities dejected by RNAM's decision to sell remaining pledged shares of Rana Kapoor

    Yes Bank promoter entities dejected by RNAM's decision to sell remaining pledged shares of Rana Kapoor
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    By CNBC-TV18  IST (Published)

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    Yes Capital India Pvt. Ltd (YCPL) and Morgan Credits Pvt. Ltd (MCPL) on Wednesday said it's highly dejected by the selling of family shareholding in the bank at such dismal price levels.

    After Reliance Nippon Asset Management (RNAM) directed its trustees to sell the remaining shares pledged by Yes Bank co-founder Rana Kapoor as collateral with the fund house, Yes Capital India Pvt. Ltd (YCPL) and Morgan Credits Pvt. Ltd (MCPL) on Wednesday said it's highly dejected by the selling of family shareholding in the bank at such dismal price levels.
    Yes Bank promoter entities said shares of the bank were pledged by Kapoor to support the borrowings of MCPL and the proceeds from the sale of Yes Bank shares held by YCPL and MCPL allowed the companies to repay non-convertible debentures (NCDs) of YCPL fully and over 61 percent of MCPL as of September 30.
    According to promoter entities, the total prepayments to RNAM by MCPL amount to Rs 1,145 crore, well before the due date of April 2021, "But to our extreme disappointment, we were informed late yesterday of RNAM selling our pledged stake in the open market."
    YCPL and MCPL said, "Stood by our commitment to debt holders in spite of deeply stressed market circumstances and decline in Yes Bank share price."
    Further, the entities said, "Will continue to focus energies on growing start-up ventures incubated by us and the sale of shares by RNAM in no way reflects our views on Yes Bank."
    "Firmly believe that the bank, led by its highly capable management team and board, is firmly positioned to continue on the growth path, deliver value to shareholders," group entities added.
    The private sector lender's share price had plunged by nearly 30 percent during intra-day trade on Tuesday (October 1), before closing the session down by 22.8 percent at Rs 32.
    In its filing on Wednesday, Yes Bank also asserted that its financial and operating metrics remain intrinsically stable.
    "Over the past few days, unfounded speculations regarding the bank's deposits/liquidity have been brought to its notice. In this regard, kindly note that the bank had a Liquidity Coverage Ratio in excess of 125 per cent as on September 30, 2019, which is well above the minimum regulatory requirement of 100 percent," it said.
    The bank's gross advances as on September 30, 2019, stood at Rs 2.32 lakh crore, as against Rs 2.42 lakh crore by June-end 2019, with a higher share of retail advances compared to June, it added.
    The reduction in advances was effected to enhance capital efficiency, Yes Bank said. "Further, deposits aggregated to Rs 2.09 lakh crore as on September 30, 2019. CASA ratio improved to nearly 30.8 per cent as compared to 30.2 per cent as on June 30, 2019," it said.
    Kapoor and his group entities had sold 2.16 percent of their stake in the bank worth Rs 510 crore through the open market transaction on September 26-27. After this, Kapoor and his group entities' stake in the bank came down to 4.72 percent.
    Earlier last week, Yes Capital, one of the promoter entities of Yes Bank, sold 1.8 percent stake in the private sector lender. The stake sale helped the promoter group entity mop up around Rs 240 crore.
    Last month, another promoter Morgan Credits had sold 2.3 percent stake in Yes Bank for Rs 337 crore to prepay a certain part of its outstanding dues to Reliance Nippon Life AMC.
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