Finance

Yes Bank's holding firms reportedly paid Rs 700 crore to avoid covenant breach

Updated : November 29, 2018 08:39 AM IST

Yes Bank’s shares have plunged more than 60 percent in 2018 from a high of Rs 404.

The plunge in shares of Yes Bank has triggered worries about mutual fund investments in the non-convertible debentures of holding companies of co-founder Rana Kapoor, said the report.

Yes Bank's holding firms reportedly paid Rs 700 crore to avoid covenant breach

Yes Capital and Morgan Credits, the holding companies of Yes Bank, have paid about Rs 700 crore in cash collateral to Franklin Templeton Mutual Fund and Reliance Mutual Fund to avoid breach of covenants in non-convertible debentures, The Economic Times.

The Rs 630 crore bonds held in about five schemes of Franklin Templeton Mutual Fund was about to break or already broke the minimum 3 times the cover stipulated in the transaction agreement that led to the top-up of collateral, two people familiar with the matter told the newspaper.

Yes Bank’s shares have plunged more than 60 percent in 2018 from a high of Rs 404. The plunge in shares of Yes Bank has triggered worries about mutual fund investments in the non-convertible debentures of holding companies of co-founder Rana Kapoor, said the report.

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