YES Bank's promoter firms prepay Rs 4 billion of loans to mutual funds

Interestingly, the day the rating was reaffirmed, the share price of YES Bank was down 50% in three months

The shares of YES Bank on Monday fell as much as 7 per cent in intra-day trade amid concerns over the rating outlook of YES Bank’s promoter-issued non-convertible debentures (NCDs). However, these concerns were allayed to some extent, as sources said the bank’s promoter companies had prepaid Rs 4 billion of the outstanding loans to the two mutual fund (MF) houses holding the debentures.

The bank’s scrip also recouped its losses, closing 4 per cent lower on Monday. According to sources, Franklin MF and Reliance MF each received Rs 2 billion from the promoter companies.

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