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YES Bank co-promoter family ready to dilute stake below 8.3%

YES Bank's single-largest shareholder and co-promoter Gogia said that the co-promoter family will extend its full support to the bank's management in its efforts of raising capital.

twitter-logo BusinessToday.In        Last Updated: October 11, 2019  | 18:08 IST
YES Bank co-promoter family ready to dilute stake below 8.3%
"I'm also confident that we will shed our past and transform into the future," Gogia said

Shagun Gogia, daughter of late Ashok Kapur, on Thursday said that the Kapur family is willing to dilute its shareholding in YES Bank below the current 8.3% stake in case a big investor comes on board at the end of the ongoing capital-raising exercise.

YES Bank's single-largest shareholder and co-promoter Gogia said that the co-promoter family will extend its full support to the bank's management in its efforts of raising capital.

Gogia, who was recently inducted to the board of the private sector lender, told PTI, "I cannot give a base to where we are willing to let our stake fall, but we are willing to dilute our stake in the event of a large investor coming on board."

"Regulatory compliance, risk management and governance functions are fully streamlined at present at the bank," Gogia further said. "We are 100 per cent confident that these concerns of governance and transparency that were there in the past are now behind us."

When asked about potential investors in YES Bank, Gogia without specifying any names said the bank is at an "advanced stage" of getting an investor. "There are many investors who are keen to enter the bank given its strong business franchise," she added.

"I'm also confident that we will shed our past and transform into the future," she said, adding that 95% of the Kapur family's wealth is in YES Bank shares.

YES Bank's CEO Ravneet Gill took charge in March 2019 after the Reserve Bank of India (RBI) turned down the re-appointment of co-promoter Rana Kapoor as CEO and MD. In August 2018, RBI has asked him to leave by January 31, on worries over corporate governance and risk management of the lender.

(edited with agency inputs)

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