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Rana Kapoor Sells Rs 337 Crore Of Shares In Yes Bank

In April 2018, Morgan Credits, placed NCDs worth Rs 1,160 crore with Reliance Nippon. With the same amount, they were supposed to raise funds for incubation of startups.

Photo Credit : Ritesh Sharma

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Rana Kapoor, Co-founder of the Yes Bank, has sold a 2.3 per cent stake for Rs 337 crore in the private sector lender, reported by leading media houses.

In a stock-exchange filing, the bank has mentioned that it will use the payment to pay in advance a portion of its outstanding non-convertible debentures (NCDs) subscribed by Reliance Nippon Life Asset Management Company.

The company did not disclose the name of the buyer firm.

In April 2018, Morgan Credits, placed NCDs worth Rs 1,160 crore with Reliance Nippon. With the same amount, they were supposed to raise funds for incubation of startups.

The share sale has helped it repay NCDs worth Rs 722 crore till date, ahead of the maturity date of April 2021. At the time of the sale, Yes Bank promoters Rana Kapoor and Madhu Kapur families—to reduce their stake in the lender to 15.7 per cent from 18 per cent.

On 10 September, Ravneet Gill, the current chief executive officer of Yes Bank who took charge in March, has said the bank wants to increase focus on compliance and governance.

Notably, these are the two critical areas on which his predecessor Rana Kapoor had to step down, as the banking sector regulator RBI had found lapses on the part of the bank on these issues.

The bank had posted its first-ever quarterly loss at? 1,506.64 crore on the back of higher provisions in the quarter ended March 2019, compared to a profit of? 1,179.44 crore in the year-ago period.

However, it returned to profit subsequently and posted at ?114 crore profit in the first quarter ended June of the current financial year.

(With inputs from agency)


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