Beena Parmar Moneycontrol News
Diamonds have yet again found a reference in the banking industry, and this time, it is Yes Bank.
No, it is nothing like the scam that was unearthed at Punjab National Bank (PNB), headlined by diamond merchant Nirav Modi.
Rana Kapoor, the largest promoter and co-founder of Yes Bank, has taken to Twitter to say that his shares of the bank are invaluable and will remain with him forever like diamonds.
At the same time, Kapoor said, "In this leadership transition at YES BANK, I continue to remain fully committed to the interests of the Bank and all its stakeholders. I will be fully guided by the Board of Directors of YES BANK and the Reserve Bank of India."
“I will eventually bequeath my @YESBANK Promoter shares to my 3 daughters and subsequently to their children, with a request in my Will stating not to sell a single share, as Diamonds are Forever!!” Kapoor tweeted.
Kapoor and family holds 10.66 percent stake in Yes Bank, making him the largest shareholder (and promoter) of the mid-sized private bank. Madhu Kapur, wife of later Ashok Kapur, who was the co-founder of Yes Bank, holds 7.6 percent in Yes Bank.
Also Read : Yes Bank denies hiding bad loans, manipulating stock price
This comes following the Reserve Bank of India (RBI) action on Kapoor to step down as the bank’s chief executive officer and managing director (CEO and MD) from January 31, 2019 as against the shareholders’ and board’s proposal till September 2021.
Taking to the micro-blogging social media website, Kapoor said, “Even after I demit office as MD & CEO of YES BANK, I will never ever sell my @YESBANK shares.”
The board of Yes Bank on September 25 informed the stock exchange about its decision to request the central bank to allow Kapoor to remain at the helm until a minimum of April next year and further extend it to September 30, 2019.
The private lender faced RBI action for under-reporting of total bad loans worth Rs 10,531 crore for two consecutive fiscal years – FY16 and FY17.
In a response to queries by National Stock Exchange (NSE), Yes Bank has denied any “window dressing” of corporate loans to hide its non-performing asset (NPA) status.
For now, the bank has appointed a selection committee in place to find a successor for Kapoor, who has been at the helm since its inception in 2004.
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