YES Bank founder Rana Kapoor is virtually out of the bank now, holding just 900 shares worth less than Rs 60,000. Kapoor, with his brother-in-law Ashok Kapur and others, set up YES Bank in 2003, holding 26 per cent in the bank. Now, his stake is close to zero per cent after the holding company YES Capital (India) sold 20.4 million shares worth Rs 142.75 crore.
He had compared YES Bank shares with diamonds in September last year.
“Diamonds are Forever: My Promoter shares of @YESBANK are invaluable to me,” Kapoor had tweeted. “I will eventually bequeath my @YESBANK promoter shares to my three daughters and subsequently to their children, with a request in my Will stating not to sell a single share,” he had added.
But his 3.92 per cent pledged shares were invoked in October, putting Kapoor’s direct holding in the bank zero. Under Kapoor, total assets of the bank grew at a compound annual growth rate of 34 per cent in 10 years through March 2018, outpacing its peers among Indian banks, according to Bloomberg.
Kapoor was also engaged in a protracted boardroom battle with Madhu Kapur, wife of late Ashok Kapur, over board positions. The Bombay High Court ruled in favour of Madhu Kapur, giving her say in the appointment of board members. The Madhu Kapur camp was against Rana’s reappointment as the CEO.
However, despite a temporary truce between the two camps, YES Bank stock did not recover. Year to date, the stock has fallen 65 per cent to Rs 64.15 a share.