YES Bank Managing Director and CEO Rana Kapoor on Friday underlined his commitment to the interest of the bank and its stakeholders, and vowed to never sell his stake in it.
“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,” he tweeted. He would not sell his shares even after demitting office as his promoter shares were invaluable to him. “I will eventually bequeath the shares to my three daughters and subsequently to their children, with a request in my Will stating not to sell a single share, as Diamonds are Forever,” he said.
Kapoor’s assertion comes amid reports that Madhu Kapur, the wife and legal heir of the bank’s deceased co-promoter Ashok Kapur, had sold some of her shares, representing 0.04 per cent stake, in the open market on September 21 amid the heavy slide in share price. Subsequently, Kapur’s stake has come down to 9.28 per cent.
Earlier this month, the RBI had trimmed Kapoor’s term as the CEO and MD and asked him to step down after January 31, 2019.
The Board of Directors in a meeting on September 25 has set up a search and selection committee to appoint a successor to Kapoor. The board also plans to request the RBI to consider extending his term.
On Friday, YES Bank shares fell 9.72 per cent to trade at ₹183.45 on the BSE. The shares have plunged by 40 per cent from September 19 following the RBI cutting short Kapoor’s term in office. YES Bank had also issued a statement reiterating its strong financial position. “The bank has consistently demonstrated a track record of raising and accreting capital across various instruments and cycles, with a capital funds base of nearly ₹50,000 crore, having started with a capital funds base of ₹217 crore in 2004.”
“It is too early to speculate on the transition,” market sources said, adding that the private sector lender is hopeful of an extension to Kapoor. The Yes Bank Board has decided to seek an extension for Kapoor until April 30, 2019 from the RBI for finalising the audited financial statements for 2018-19 and then up to September 30, 2019 for the statutory annual general meeting process to be completed.