Banking
The board of directors of Yes bank said that the financial position of the bank is sound and stable, and its growth plans stay firmly on track.

Morgan Credits Pvt Ltd, an entity owned by Rana Kapoor, the promoter of Yes Bank and his family, have sold 2.3% stake in the bank. The details of who bought these shares has not been disclosed. The bank’s management quickly stepped in to issue a statement that the stake sale by the promoter-owned company does not in any way reflect on the performance of the bank. The statement issued in the name of the board of directors of the bank and sent to the exchanges says the bank’s future plans for growth remain in place.

On its part, Morgan Credits has explained that it liquidated the stake it held in Yes Bank to raise funds to pre-pay its debts in the form of non-convertible debentures. The total stake owned by Morgan Credits and Yes Capital India Pvt Ltd, the two entities owned by Rana Kapoor and his family stood at 9.65%, of which Morgan Credits held 2.76%. With this stake sale, the total holding comes down to 7.4%. It has been also disclosed that the NCDs were valued at Rs 722 crore including interest and the holder of these NCDs is Reliance Nippon Life Asset Management Company (RNAM).

Morgan Credits Pvt Ltd has put out a statement that they had placed non-convertible debentures to the tune of Rs 1,610 crore and with this prepayment of Rs 722 crore, the company is trying to pare its outstanding debt. The moneys raised through the NCDs were used to invest in startups.

The overall holding by promoters in Yes Bank which stood at 18% has now come down to 15.7%. This figure is closer to the 15% that the Reserve Bank of India has been insisting on as the threshold limit for promoter holding in private banks.