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Yes Bank gains after Madhu Kapur, family withdraw case against bank

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Capital Market 

Yes Bank rose 1.51% to Rs 30.35 after the bank on Tuesday (9 June) said that Madhu Kapur and other family members have withdrawn a case filed against the bank in 2013.

The families of the founders of Yes Bank, Ashok Kapur (died in the November 2008) and Rana Kapoor, were locked in a dispute over the nomination of people to the board of the bank.

Madhu Kapur, wife of the bank's late co-founder Ashok Kapur, had filed a petition in the Bombay high court seeking various reliefs including recognition of the family's right to participate in the management of the bank. The suit also sought to restrain individual directors from acting as such or holding themselves out as directors of the bank, and restrain the bank from making or continuing with any application to any regulator/authorities for reclassifying the Kapur familys shareholding into a non- promoter shareholding.

Yes Bank announced on Tuesday (9 June) that Kapur family has agreed to reclassify its shareholding as "non-promoter" as per an intimation on 30 May. The suit was withdrawn following reclassification of the familys holding and the Bombay High Court allowed the withdrawal. As on 31 March 2020, Madhu Kapur and Rana Kapoor held 1.12% each in Yes Bank.

Yes Bank was under moratorium for 13 days in March 2020. It resumed full-fledged banking operations from 18 March 2020. This came after a consortium of eight public and private banks, led by State Bank of India, agreed to infuse capital into Yes Bank to rescue it from the brink of a collapse. These financial institutions had together pooled in Rs 10,000 crore as investment at Rs 10 per share in Yes Bank when it faced pressure from depositors.

Yes Bank reported a net profit of Rs 2628.61 crore in Q4 March 2020 as against a net loss of Rs 1506.64 crore in Q4 March 2019. Total income rose 44.4% to Rs 12,115.53 crore in Q4 March 2020 over the corresponding period last year.

The bank generated an extraordinary income (net of tax) of Rs 6,296.94 crore during the quarter on account of writing down of certain Basel III additional tier-1 (AT-1) bonds amounting to Rs 8,415 crore.

Excluding this extraordinary item, Yes Bank reported a net loss from ordinary activities of Rs 3,668.33 crore in Q4 March 2020 compared with a net loss from ordinary activities of Rs 1,506.64 crore in Q4 March 2019.

Yes Bank is a full service commercial bank' providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, June 10 2020. 14:05 IST