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Promoter Rana Kapoor sells all but 900 YES Bank shares, worth Rs 60,000

Year to date, the stock of YES Bank has fallen 65 per cent to Rs 64.15 a share

Anup Roy  |  Mumbai 

Rana Kapoor
File photo of Rana Kapoor

founder 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 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 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.

Promoter Rana Kapoor sells all but 900 YES Bank shares, worth Rs 60,000
As YES Bank reported huge divergence, more than Rs 10,000 crore in two years to financial year 2017, the Reserve Bank of India (RBI) refused to approve Kapoor’s extension in the bank at the start of this year.

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.

First Published: Wed, November 20 2019. 00:37 IST