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Last Updated : Oct 19, 2018 08:49 PM IST | Source: Moneycontrol.com

Yes Bank CEO Rana Kapoor meets Madhu Kapur, proposes joint promoter group: Report

Kapoor met Madhu Kapur and her daughter Shagun Gogia on October 11 with a written proposal to combine the stakes and voting rights of the two co-promoters and their affiliates

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Yes Bank Managing Director and CEO Rana Kapoor is said to have approached his rival promoter Madhu Kapur with a proposal to combine their stakes and form a joint promoter group, Mint reported.


Kapoor met Madhu Kapur and her daughter Shagun Gogia on October 11 with a written proposal to combine the stakes and voting rights of the two co-promoters and their affiliates to become a single promoter group, the report said. He also met Gaurav Kapur, late co-founder Ashok Kapur’s son, with the same proposal on October 12.


Read | Avoid the temptation, wait for RBI roadmap before investing in Yes Bank

The CEO hopes that the move will help both sides recommend directors on Yes Bank board without violating its knotty and contentious Articles of Association (AoA).

"All we can confirm is that two meetings were held on Sunday between Madhu Kapur, Shagun Gogia, Bindu Kapoor (wife of Rana Kapoor) and Neeru Puri (sister of Madhu Kapur and Bindu Kapoor from Delhi). Joint promoter group agreement is one of the many possible solutions which could possibly be considered," a Yes Bank spokesperson told the paper.

On October 17, the Reserve Bank of India (RBI) had turned down Yes Bank's request to extend its Chief Executive Rana Kapoor's term up to April next year and asked the bank to appoint a new CEO by February 1, 2019.

Kapoor, who has been the founding CEO of the mid-sized private bank since 2004, was asked to step down from January 31, 2019, by RBI. This was against the board and shareholders' proposal to extend his term by three years after his same ended on August 31.

Read: Macquarie, JPMorgan stay positive on Yes Bank post board meet

"In order to discuss the settlement terms, Madhu Kapur, Bindoo Kapoor, Shagun Gogia and another sister of Madhu Kapur met in Mumbai on Sunday (October 14) twice," a source told the paper.

In a separate development, Yes Bank’s Senior Group President Rajat Monga too reached out to the Kapurs on October 10, the source added.

If Kapur accepts this proposal, it could end nearly a decade of disaffection and litigation among promoters of the private lender. This will pave the way for promoters to exercise their rights as per sections 110 and 127 of Yes Bank’s AoA at any time, another source told the paper.

It would also allow Kapoor to nominate himself or one of his affiliates on the board of the bank even after his exit without opposition from other co-founders.

Read: Yes Bank may take back Rana Kapoor's FY15, FY16 bonuses; new CEO likely to be named by Dec 15

Currently, Kapur and her associates hold around 9.23 percent in Yes Bank, while Kapoor, along with his associates, holds about 10.7 percent in the bank. After the proposed agreement, the combined holding of the promoter group will be around 20 percent. Individually, Kapur and Kapoor own 7.59 percent and 4.33 percent in Yes Bank, respectively.
First Published on Oct 19, 2018 11:55 am
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