Court asks YES Bank promoters to settle dispute amicably

The Bombay High Court has reserved its order till June 2, in the legal dispute involving YES Bank CEO and MD Rana Kapoor and his sister-in-law Madhu Kapur, the two largest shareholders in the bank.

Media briefing After a closed-door discussion for about half-an-hour, Justice Gautam Patel briefed the media saying, “Both the parties are in talks...I am deferring the proceedings in the case till June 2 so as to enable both the sides arrive at an amicable solution.”

The Judge said that it is unusual for the Court to address the media, “but I know you are doing your job. I do not want to be followed to my chamber because I do not speak to the press. There is nothing else there to be reported other than what I have said.”

The media was kept out of Court proceedings in the case on Tuesday as well.

It was alleged that one of the parties involved in the case had request a closed door hearing.

The dispute Late last week, the Court had asked both parties to reduce their stake in the bank to below 10 per cent to resolve the issue.

However, the largest shareholders seem unwilling to consider the same as reducing the stake would deny them the right to nominate directors on the Bank’s board.

As of the March quarter, Rana Kapoor owned 11.77 per cent stake while Madhu Kapur and family has 10.29 per cent in the mid-sized private bank.

In June 2013, Madhu Kapur, widow of co-founder Ashok Kapur (who passed away in 26/11 terrorist attack in Mumbai), moved the Court to establish her rights to nominate directors on the bank’s board.

Rana Kapoor’s wife Bindu, and Madhu Kapur, are sisters.

YES Bank, on its part, maintains that the appointment of directors by the bank’s board cannot be questioned in a court of law.

Shares of Yes Bank ended higher by 2.1 per cent at ₹840.70 per share on BSE.

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