Rana Kapoor, Morgan Credits pledge 7.34% stake in YES Bank with lenders

The pledge was created in favour of the debenture trustee for the benefit of the debenture holders of Morgan Credits, the bank informed the stock exchanges

YES Bank promoter Rana Kapoor and his holding company Morgan Credits Pvt Ltd have pledged 170 million shares or 7.34 per cent in the bank with lenders. The shares pledged today are worth about Rs 1,500 crore.

Kapoor owned a 10.6 per cent stake in the bank at the end of the June 2019 quarter through three entities – Rana Kapoor, Morgan Credits and YES Capital (India). The stake is worth Rs 2,200 crore as on Tuesday. 

The pledge was created in favour of the debenture trustee for the benefit of the debenture holders of Morgan Credit, according to the disclosure.

Last week, YES Bank reported a 90 per cent year-on-year decline in its net profit for the June 2019 quarter because of higher mark-to-market provisioning for bad loans and decline in non-interest income.

Shares of YES Bank have declined 75 per cent in the past year. The bank plans to launch a share sale worth $1 billion to increase its capital buffer.