Connect with us

Hi, what are you looking for?

Bnreport Business News Report


YES Bank denies running parallel business with Kapoors Family Office, hiding NPAs

Private sector lender YES Bank on Thursday denied any dealin..

Private sector lender YES Bank on Thursday denied any dealings with the Three Sisters Family Office, which is run by the banks founder CEO Rana Kapoors three daughters Radha Rana Kapoor, Raakhe Rana Kapoor and Roshini Rana Kapoor.

The National Stock Exchange had sent a notice to the lender, seeking its response to allegations that Kapoors family office was running a parallel lending or investing business, by compromising the interest of YES Bank.

The private lenders shares plunged 9.14 per cent in Mumbai trading on Thursday to close at Rs 203.20 on BSE. The stock has been under pressure in recent weeks amid uncertainty over its next CEO after RBI cut short Rana Kapoor's tenure to January 31, 2019.

In response to another query from NSE about alleged window dressing of corporate accounts to conceal actual non-performing assets by way of ever-greening of loans, the lender clarified that it has not entered into any transactions with the intent to any window-dressing of corporate accounts to conceal NPA status.

“The bank is subject to the annual risk-based supervision exercise by the Reserve Bank of India, which entails a comprehensive review of all aspects of banks functioning. As mandated and required under regulations, the bank has been making all disclosures to stakeholders on NPA divergence-related finding. This is validated by our statutory auditor BSR & Co on a quarterly basis,” YES Bank said in its filing.

The bank's board on Tuesday decided to request RBI for at least a three-month extension for Rana Kapoor, Managing Director and Chief Executive Officer, beyond January 31, 2019. The banks board has also formed a five-member panel to find a successor to the founder CEO.

RBI had last week curtailed the three-year term that the board had sought for Kapoor to January 31, 2019, and asked the bank to find a replacement. The banking regulator offered no reasons for the curtailment of the term.

Kapoor is the second chief executive at a private sector lender after Shikha Sharma of larger rival Axis Bank to face regulatory disapproval for CEOs tenure extension.

Earlier, in regulatory audits conducted by RBI, both the banks had been found to have under-reported non-performing assets to the tune of over Rs 10,000 crore for two consecutive years.

Original Article


ET Markets


Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae.


Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.


Enlarge/ You wouldn't really want to use Nvidia's ..


Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

%d bloggers like this: