RNAM directs trustees to sell remaining pledged shares of Rana Kapoor in YES Bank
BCCL
Synopsis
Kapoor has pledged shares of Yes Bank to RNAM, asset manager of Reliance MF, as collateral.
By PTI
Last Updated:
New Delhi: Reliance Nippon Asset Management Company (RNAM) on Tuesday directed its trustees to sell the remaining shares pledged by Rana Kapoor, co-founder of Yes Bank, as a collateral with the mutual fund house, sources said.
Stock of Yes Bank came under massive selling pressure in afternoon trade and plunged over 20 per cent to Rs 29.05 -- its multi-year low -- on the BSE. The stock closed at Rs 32.00, down 22.80 per cent.
"RNAM has given instruction to its trustees to sell entire holding of Kapoor in Yes Bank," one of the sources privy to the development said.
Kapoor has pledged shares of Yes Bank to RNAM, asset manager of Reliance Mutual Fund, as collateral.
When contacted, the bank refused to comment on the development.
Kapoor and his group entities -- YES Capital and Morgan Credit -- have been reducing stake in Yes Bank, which is reeling under exposure to stressed assets.
In September, YES Capital sold 1.8 per cent shareholding in the bank and said the proceeds would go to Franklin Templeton Asset Management, with whom its shareholding of Yes Bank was pledged.
In the same month, Morgan Credits had sold 2.3 per cent stake in Yes Bank for Rs 337 crore to prepay certain part of its outstanding dues to RNAM.
After the RBI curtailed Kapoor's tenure at the helm of the bank to January 31,2019, the share price of the bank has been under pressure, which raised concerns among mutual funds, as the shares were the primary security against which loans were given, and fund houses feared booking mark-to-market losses.
Kapoor reportedly invited the regulatory ire after the bank underreported non-performing assets (NPAs) worth more than Rs 10,000 crore in 2015-16 and 2016-17.
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Kapoor, who is also a promoter of Yes Bank, has less than 5 per cent stake left in the private lender, and the same has been pledged with RNAM, they added.Stock of Yes Bank came under massive selling pressure in afternoon trade and plunged over 20 per cent to Rs 29.05 -- its multi-year low -- on the BSE. The stock closed at Rs 32.00, down 22.80 per cent.
"RNAM has given instruction to its trustees to sell entire holding of Kapoor in Yes Bank," one of the sources privy to the development said.
Kapoor has pledged shares of Yes Bank to RNAM, asset manager of Reliance Mutual Fund, as collateral.
When contacted, the bank refused to comment on the development.
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Kapoor and his group entities -- YES Capital and Morgan Credit -- have been reducing stake in Yes Bank, which is reeling under exposure to stressed assets.
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In September, YES Capital sold 1.8 per cent shareholding in the bank and said the proceeds would go to Franklin Templeton Asset Management, with whom its shareholding of Yes Bank was pledged.
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In the same month, Morgan Credits had sold 2.3 per cent stake in Yes Bank for Rs 337 crore to prepay certain part of its outstanding dues to RNAM.
After the RBI curtailed Kapoor's tenure at the helm of the bank to January 31,2019, the share price of the bank has been under pressure, which raised concerns among mutual funds, as the shares were the primary security against which loans were given, and fund houses feared booking mark-to-market losses.
Kapoor reportedly invited the regulatory ire after the bank underreported non-performing assets (NPAs) worth more than Rs 10,000 crore in 2015-16 and 2016-17.