You are here: Home » Finance » News » Banks
Business Standard

RNAM directs trustees to sell remaining pledged shares of Rana Kapoor

Kapoor has pledged shares of Yes Bank to RNAM, the asset manager of Reliance Mutual Fund, as collateral

Press Trust of India  |  New Delhi 

Rana Kapoor has held preliminary talks with Paytm's Vijay Shekhar Sharma

Reliance Nippon Asset Management (RNAM) on Tuesday directed its trustees to sell the remaining shares pledged by co-founder as collateral with the fund house, said people in the know.

Kapoor, also a promoter of Yes Bank, has below 5 per cent stake left in the private lender, and the same has been pledged with RNAM, they added.

The stock came under massive selling pressure in afternoon trade and plunged over 20 per cent to Rs 29.05 — its multi-year low — on the BSE. The stock closed at Rs 32.00, down 22.80 per cent. “RNAM has given instruction to its trustees to sell entire holding of Kapoor in Yes Bank,” said a person privy to the development.

Kapoor has pledged shares of to RNAM, the asset manager of Reliance Mutual Fund, as collateral.

When contacted, the bank refused to comment on the development.

Kapoor and his group entities — YES Capital and Morgan Credit — have been reducing their stake in Yes Bank, which is reeling under exposure to stressed assets.

In September, YES Capital sold 1.8 per cent stake in the bank and said the proceeds from the stake sale would go to Franklin Templeton Asset Management, with whom its Yes Bank stake was pledged.

In the same month, Morgan Credits sold 2.3 per cent stake for Rs 337 crore to prepay a certain part of its outstanding dues to RNAM.

After the central bank curtailed Kapoor’s tenure at the helm of the bank to January 31, 2019, the share price of the bank has been under pressure, which raised concerns among MFs as the shares were the primary security against which loans were given, and fund houses feared booking mark-to-market losses.

Kapoor reportedly drew the RBI’s ire after the bank underreported non-performing assets (NPAs) worth more than Rs 10,000 crore in FY16 and FY17.

First Published: Tue, October 01 2019. 22:18 IST
RECOMMENDED FOR YOU