 "Yes Bank's promoter shareholders deny commercial dealings with the lender")
Two promoter shareholders of Yes Bank -- Morgan Credits (MCPL) and Yes Capital (YCPL) -- Wednesday said they have raised some funds to meet their growth objectives and have no commercial dealings with the private sector lender.
"To address their growth objectives, MCPL and YCPL have raised some debt which is well within their eligibility limits. MCPL and YCPL have at all times complied with all covenants of such debt including servicing obligations and will continue to do so," the two companies said in a joint statement.
The statement comes in the wake of a media report which said Yes Bank chief Rana Kapoor's investment firms borrowed money from mutual funds and invested it as equity in a finance company.
Morgan Credits Pvt Ltd (MCPL) and Yes Capital (I) Pvt Ltd (YCPL) are holding companies owned 100 per cent by Radha K Khanna, Raakhe K Tandon and Roshini Kapoor (Rana Kapoor's daughters)
Radha, Raakhe and Roshini are qualified, independent woman entrepreneurs and have put in place a professional management team under the brand 'The Three Sisters: Institutional Office (TTS:IO)' through which greenfield, start-up ventures have been established, said the statement.
"Each start-up business is run by a professional CEO and management team. TTS:IO, MCPL, YCPL or the start-up ventures have no involvement and/or commercial dealings with YES Bank (except that MCPL and YCPL are amongst the promoter shareholders of Yes Bank holding 3.04 per cent and 3.27 per cent shares of the bank respectively), and both institutions run completely independently," it said further.
It also said that the Yes Bank MD and CEO Rana Kapoor is also not involved in any capacity including as a shareholder, director or management of MCPL, YCPL, TTS:IO, or the start-up ventures.
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Yes Bank, in a clarification sought by stock exchanges, said that the bank is not involved in any way with these companies.
"We would like to submit that the bank is not involved in any way whatsoever with the funds management of the two companies referred in media articles and the bank has no dealings with these two companies except that Yes Capital and Morgan Credits, being promoter group entities," it said in its response to BSE.
Stock of Yes Bank Wednesday plunged 11.71 per cent on BSE following a downgrade of the bank's ratings to non-investment category and change of outlook to negative from stable by Moody's Investors Service.