Rana Kapoor, managing director (MD) and chief executive officer (CEO) at Yes Bank, reiterated his commitment to the bank and its stakeholders on Friday. In a series of tweets, Kapoor said his YES Bank shares were invaluable. He said he would never sell his shares, even after he demits office as the private lender’s MD and CEO.
“I will bequeath my YES Bank promoter shares to my three daughters and subsequently to their children, with a request in my will stating not to sell a single share, as diamonds are forever,” he said.
Earlier this month, the Reserve Bank of India (RBI) cut Kapoor’s three-year term to four months ending January 31, 2019. However, the private lender plans to seek Kapoor’s reappointment till the next annual general meeting in September 2019, according to an exchange filing on Tuesday.
The bank’s stock has been falling drastically in September due to uncertainties regarding succession plans. While the bank’s stock price hit an all-time high of Rs 393.9 on August 20, it closed at Rs 183.45 a share on Friday.
The bank’s current market value stands at Rs 484.6 billion, while that of Kapoor and his family is pegged at Rs 45.2 billion. The market value of Kapoor and his family’s stake has seen an erosion of Rs 51.7 billion from August 20 to date.
As promoters, Kapoor and his family own 10.66 per cent in the bank, as of June 2018. Kapoor individually owns 4.34 per cent of the shares in the bank. His three daughters — Raakhe Kapoor Tandon, Radha Kapoor Khanna and Roshni Kapoor — are directors of holding companies, YES Capital and Morgan Credits, which own 3.28 per cent and 3.05 per cent, respectively, in YES Bank.
The bank promoted two senior leaders, Rajat Monga and Pralay Mondal, as executive directors and set up a committee to search for Kapoor’s successor at a board meeting on Tuesday.
On Monday, the bank had sent out a media statement saying Kapoor would follow the decision of the board and the RBI in an attempt to quell rumours that he resorted to legal avenues to fight the regulator’s stand.
The National Stock Exchange had sought clarifications from the bank after it had received a letter making allegations of window dressing of non-performing assets, influencing share price as well as using Kapoor’s daughters’ trust to “conduit to undue benefits for credit exposure”.
The bank denied these allegations in an exchange filing on Thursday.