YES Bank scrip gains over 2% as Madhu Kapur and family withdraw case from Bombay HC

Shares of YES Bank closed nearly 2 per cent higher on the BSE on Wednesday after Madhu Kapur and other family members withdrew a case against the private sector lender filed in Bombay High Court in 2013.

The families of the bank’s two promoters – Rana Kapoor and Madhu Kapur – were in the legal fight over the right to nominate directors to the board. Madhu Kapur is the wife of the bank’s co founder Ashok Kapur who passed away in 2008.

“The plaintiffs had sought the following three broad categories of reliefs in the suit – recognition of the plaintiffs’ rights to participate in the management of the bank, restrain individual directors from acting as such or holding themselves out as directors of the bank, and restrain the defendants from making or continuing with any application to any regulator and authorities for reclassifying the plaintiffs’ shareholding into a non-promoter shareholding,” YES Bank said in a regulatory filing on June 9.

The bank said the family has now now withdrawn the suit, which has been allowed by the Bombay High Court.

YES Bank scrip closed at a gain of 1.84 per cent at ₹30.45 apiece on the BSE on Wednesday.

The move comes after the bank was put under a moratorium in March and the government and the Reserve Bank of India implemented the reconstruction scheme for the troubled lender under which State Bank of India picked up a majority stake. The Madhu Kapur Group has also agreed to be reclassified as non-promoter shareholders of the bank.

Moratorium on loans

Meanwhile, YES Bank said that 15 per cent to 20 per cent of its corporate and MSME borrowers had taken the moratorium on loans, while 20 per cent to 25 per cent of retail customers had taken the moratorium as on April 15.