Yes Bank to Sell 10% Shares Each to Hero Group’s Munjal and DSP’s Kothari

New Delhi, November 14, 2019:

Chairman of Hero Corporate Services Ltd, Sunil Munjal, and Veteran investment banker and founder of DSP Group, Hemendra Kothari may acquire 10 percent of Yes Bank, according to reports.

The two businessmen have, reportedly, expressed to invest in the acquisition of 10 percent each of Yes Bank’s shares. However, they can proceed with the investments after the Reserve Bank of India gives its approval for the shares. It may be mentioned here that for any investment in an Indian bank above five percent requires the approval of the apex bank.

An amount of Rs. 3,500 Crore has been projected for Yes Bank if the investments proceed with the purchase of the 10 percent shares.

It may be mentioned here that Yes Bank has come under the scanner following several bad loans. The management also saw a rejig with Ravneet Gill as the new CEO and the founder CEO Rana Kapoor taking the exit route.

The Reserve Bank of India has been closely monitoring Yes Bank to remain above fiscal requirements to stay liquid. The bank’s tier I capital adequacy ratio was reported at 11.5 percent against the regulatory requirement of 8.875 percent as of September and its common equity tier 1 capital stood at 8.7 percent, where the regulatory requirement was 7.375 percent.

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