Yes Bank has said there will be a reclassification of shareholding as the "Madhu Kapur Group" has consented to be categorised as "public shareholders". "Bank has received a letter dated May 28, 2020, from (i) Mrs Madhu Ashok Kapur; (ii) Mrs Shagun Kapur Gogia; (iii) Mr Gaurav Ashok Kapur; and (iv) Mags Finvest
Private Limited [collectively referred to as "Madhu Kapur Group"] consenting to reclassify their shareholding in the Bank as 'non-promoter shareholders' (i.e. public shareholders)," Yes Bank told the stock exchanges. "The Bank would take further necessary action to give effect to this," Yes Bank said.
Notably, the Madhu Kapur Group has been seeking bigger control over the bank since 2008 following Ashok Kapur's death. The current announcement by the Group ends the years-long controversial battle. Madhu Kapur holds 14 crore or 1.12 per cent of the bank's shares. Another investor Mags Finvest holds 3.72 crore or 0.3 per cent shares.
Yes Bank was co-founded by Rana Kapoor and Madhu Kapur's late husband Ashok Kapoor in 2004. Both families are related as Rana Kapoor's wife Bindu Kapoor and Madhu Kapur are sisters. Rana Kapoor is currently in the Enforcement Directorate's custody on the charges of corruption and financial mismanagement. Though still a promoter of the bank, Rana Kapoor holds just 900 shares of Yes Bank.
The Yes Bank's management was overtaken by state-owned State Bank of India in March after the RBI superseded its board. The SBI later bailed out the bank by infusing Rs 10,000 crore. The bank's top brass includes ex-PNB chairman Sunil Mehta as non-executive chairman and former SBI MD Prashant Kumar as CEO & Managing Director. Yes Bank appointed new board and CEO after Rs 10,000 crore capital infusion by the State Bank of India (SBI) and half a dozen other banks post its takeover. Right now, SBI has 49 per cent the highest stake in Yes Bank.
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