Latest news with #RanaKapoor
News18
3 days ago
- Business
- News18
Yes Bank Shares In Focus Ahead Of Board Meeting To Discuss Fund Raise, Clarify Speculation
Last Updated: Yes Bank was the third-best performer on the Nifty 500 index on Tuesday, rallying over 8%; What investors should know Yes Bank Share Price: Shares of Yes Bank Ltd., a Mumbai-based private lender, will be in the spotlight again on Tuesday, ahead of its board meeting to consider a fundraising proposal. Yes Bank was the third-best performer on the Nifty 500 index on Tuesday, rallying over 8% following media reports that Sumitomo Mitsui Banking Corporation (SMBC) is seeking approval from the Reserve Bank of India (RBI) to operate a wholly-owned subsidiary. The move was interpreted as a step toward acquiring a controlling stake in Yes Bank. However, Yes Bank quickly issued a clarification in the early hours of Tuesday, stating it was not aware of any such discussions. 'Further references to the bank having 'road map' discussions with the RBI are factually incorrect," the lender added. The board of Yes Bank is also scheduled to consider fundraising proposals, including the issuance of equity shares, debt securities, or any other instruments through permissible means such as private placement or preferential issue. Just last month, Sumitomo had announced plans to acquire a 20% stake in Yes Bank from a consortium of lenders led by the State Bank of India (SBI). This group had rescued Yes Bank in 2020 from a severe liquidity crisis. The deal values Yes Bank at slightly above $8 billion. Shares of Yes Bank ended 8% higher on Monday at Rs 23.22, with the stock surging nearly 30% in the past month. Yes Bank is a private sector bank in India that was founded in 2004 by Rana Kapoor and Ashok Kapur. It is headquartered in Mumbai and offers a wide range of banking and financial services, including corporate and retail banking, asset management, and wealth management. First Published:
Time of India
09-05-2025
- Business
- Time of India
Japan's SMBC to buy 20% in Yes Bank
Image used for representative purposes MUMBAI: Five years after a group of Indian lenders led by SBI stepped in to rescue Yes Bank, Japan's Sumitomo Mitsui Banking Corporation (SMBC) will acquire a 20% stake in the private lender for Rs 13,483 crore, making it the largest shareholder. The deal, India's biggest cross-border banking investment, marks a shift in ownership of the bank once run by veteran banker Rana Kapoor. Kapoor lost control in 2020 after the bank nearly collapsed due to bad loans, which wiped out its net worth. RBI then mandated a reconstruction scheme under which eight Indian banks took equity stakes. SBI will now sell a 13.2% stake, cutting its holding to just over 10%. ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank, and Bandhan Bank will offload a combined 6.8%. Operation Sindoor PM Modi meets NSA, chiefs of armed forces amid spike in tensions with Pak India's air defence systems shoot down Pak drones in J&K, Punjab & Rajasthan Several airports in India to be closed till May 15 - check list The deal is priced at Rs 21.5 per share, above the recent market price and more than double what the rescuing banks invested. SMBC, a unit of Japan's second-largest bank by assets, will become Yes Bank's anchor investor after securing regulatory and shareholder approvals. The deal may reshape the bank's strategy and comes amid SMBC's broader push into Asia. Its parent, Sumitomo Mitsui Financial Group, has $2 trillion in assets and recently took full ownership of its Indian NBFC arm, SMFG India Credit (formerly Fullerton). SMFG sees India as a counterweight to Japan's ageing population and low growth. The firm is betting on India's demographics and macroeconomic momentum. On May 6, after reports of SMBC's interest, Yes Bank denied knowledge of any unannounced developments, causing shares to erase a 10% gain. The stock again surged 10% on Friday ahead of the announcement. Banking industry observers are waiting to see if SMBC takes the wholly-owned subsidiary (WoS) route in Yes Bank. In the past, both DBS and State Bank of Mauritius used the WoS route to acquire a local banking licence. Most large foreign banks operate as branches and need permission to open new ones. SMBC will also have to deal with a bank that has a bloated equity base, following massive capital infusions. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
06-05-2025
- Business
- Mint
Yes Bank share price skyrockets 10% after reports of acquisition by Japan's SMBC
Yes Bank share price jumped over 10% in the opening trade on Tuesday after reports that Japan's Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to acquire a 51% stake in the private lender. Yes Bank share price opened higher at ₹ 19.24 apiece as against its previous close of ₹ 17.73 on the BSE. Yes Bank shares spiked as much as 9.64% to a high of ₹ 19.44 apiece. According to a report by Mint, SMBC has secured the RBI's nod to become a majority stakeholder in Yes Bank. The proposed transaction may value the lender at approximately $1.7 billion, the report said, citing people familiar with the matter. The Japanese banking major is considering two options: it may either acquire less than 26% initially and subsequently merge with Yes Bank through a share swap, or it could directly acquire up to 26% and make an open offer. While SMBC's total holding may eventually rise to 51%, its voting rights will remain capped at 26% in accordance with RBI regulations, the report added. Currently, State Bank of India (SBI) and other lenders hold 33% in Yes Bank. 'RBI has given SMBC the go-ahead for acquiring a majority stake and running Yes Bank,' one of the sources told Mint on condition of anonymity. 'This happened a few weeks after SBI and other bank shareholders agreed to sell their stakes in Yes Bank to Sumitomo Mitsui. SMBC will buy up to a 51% stake in Yes Bank at the market price. RBI has to keep every existing stakeholder's interest in mind,' the person said, adding SMBC may pay in cash for the initial stake purchased, the report added. The deal offers a long-anticipated exit route for SBI and other banks that participated in Yes Bank's 2020 bailout and introduces a strategic foreign promoter expected to enhance competitiveness at India's sixth-largest private sector bank. SMBC is likely to raise its shareholding to 51% in phases, beginning with a partial stake purchase from existing shareholders, including SBI, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. These institutions collectively own 33.74% of Yes Bank, with SBI holding the largest share at 23.99% To facilitate the transaction, SMBC has engaged JPMorgan as its financial adviser and J Sagar Associates as legal counsel, another source told Mint. Yes Bank was restructured in 2020 under the supervision of the RBI after it faced a severe liquidity crisis and regulatory issues under its former promoter and CEO Rana Kapoor. The rescue operation, led by SBI and other banks, helped stabilize the lender, but the bank has remained without a formal promoter since Kapoor's exit in 2019. Yes Bank share price has rallied 9% in one month, but the stock has fallen 5% in the year 2025 so far. Over the past one year, Yes Bank shares have declined 22%, while it dropped 29% in five years. At 9:30 AM, Yes Bank share price was trading 5.41% higher at ₹ 18.69 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 6 May 2025, 09:17 AM IST
Time of India
24-04-2025
- Business
- Time of India
Rana Kapoor gets bail in 946cr Yes Bank loan fraud case
Mumbai: Observing that nothing has been placed on record by the CBI to show that their release would cause hindrance to the progress of the trial, a special CBI court on Wednesday granted bail to Yes Bank founder Rana Kapoor and others in a Rs 946.44 crore loan fraud case . Rana and others granted bail were not formally arrested in the case. They moved the pleas after a chargesheet was recently filed against them. "... Nothing has been placed on record by the CBI to show that the custody of the applicant is necessary during the course of the trial," the judge said in Rana Kapoor's bail order. It is the proscription that EOTTL (Ezeego One Travel And Tours Limited) defrauded Yes Bank Ltd to the tune of Rs 946.44 crore by way of cheating, forgery, and diversion of funds in connivance with unknown bank officials. It is also alleged that the accused company submitted forged documents and diverted the funds advanced by the bank for the implementation of Enterprise Resource Planning (ERP), takeover of Axis Bank Facility, and business advances towards other purposes, and misused the funds. tnn
Time of India
24-04-2025
- Business
- Time of India
Loan fraud case linked to EOTTL: CBI court grants bail to Rana Kapoor, others
A special CBI court here has granted bail to Yes Bank founder Rana Kapoor in a more than Rs 1000 crore loan fraud case linked to Ezeego One Travels and Tours Limited (EOTTL). Their bail pleas filed under section 91 of Bharatiya Nagarik Suraksha Sanhita (BNSS) were allowed by special judge SH Gwalani on Wednesday. The section empowers the court to release an accused on bail bond that serves as a promise that the individual will appear before Rana, other accused granted bail in the case include chartered accounts Naresh Jain and Anil Khandelwal. They were never arrested in the case. The CBI had registered a case against them for cheating and other offences under Indian Penal Code and Prevention of Corruption accused persons and key officials of EOTTL, with the intent to cheat Yes Bank Limited, had applied for loans by submitting inflated and forged balance sheets, the probe agency alleged. It claimed EOTTL officials entered into criminal conspiracy with Kapoor, then Yes Bank's managing director and CEO. Kapoor abused his official position and sanctioned credit facilities amounting to Rs 1060 crore to EOTTL (a sister concern of Cox & Kings) despite the firm's weak financial condition, inadequate security and on the basis of forged documents, the CBI pursuance of the conspiracy, after sanctioning and disbursement loan, EOTTL wilfully diverted/siphoned the sanctioned funds to discharge liabilities of Cox & Kings Limited and other related entities of accused persons, the probe agency said. The court, in its order, said in the present case the accused were not arrested by the CBI till filing of charge has been placed on record by the CBI to show their custody is necessary during the course of trial, the court said. Further the court noted that no apprehension is put forth by the prosecution that their release on bail would cause hindrance in the progress of trial. "Therefore, considering the legal ratio cited supra and circumstances available on record, I hold that the accused has made out case for release on bail," it added.
