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YES Bank Managing Director and CEO Rana Kapoor’s efforts for a truce with co-promoter Madhu Kapur through an out-of-the-court settlement has not made much headway, said a person familiar with the development.
On Saturday, Kapoor called for a ‘family’ meeting to resolve the two-month long court battle with Madhu Kapur, widow of co-founder Ashok Kapur and sister of Rana Kapoor’s wife.
“There was no conclusion at the meeting. Though Rana Kapoor came with the intent to resolve the dispute, he did not agree to recognise our joint right to nominate a director on the bank’s Board as Indian Partners,” the person said.
YES Bank spokesman did not confirm or deny the meeting. “As the matter is subjudice, we will prefer not to comment on your queries,” the spokesman said over the phone.
A set of e-mailed questions remained unanswered by the bank. Madhu Kapur moved the Bombay high Court against the bank in early June. Since then, the stock price has plunged nearly 40 per cent.
The banking sector index on the BSE has dropped around 9 per cent in the same period. Analysts believe that the stock has corrected mainly due to concerns over sustainability of the bank’s profitability amid changing interest rate scenario in the banking sector.
“Since the dispute is public, some investors would be worried. However, larger concerns on the banking sector as a whole could be the major reason. It would be difficult to assess how much the legal battle would be impacting the stock,” said Vaibhav Agrawal, Senior Analyst, Angel Broking.
YES Bank shares ended 2.95 per cent weaker at Rs 299.35 a share on the Bombay Stock Exchange on Monday.
The High Court will further hear the case on August 12.
beena.parmar@thehindu.co.in
Source: Financial Express
On Saturday, Kapoor called for a ‘family’ meeting to resolve the two-month long court battle with Madhu Kapur, widow of co-founder Ashok Kapur and sister of Rana Kapoor’s wife.
“There was no conclusion at the meeting. Though Rana Kapoor came with the intent to resolve the dispute, he did not agree to recognise our joint right to nominate a director on the bank’s Board as Indian Partners,” the person said.
YES Bank spokesman did not confirm or deny the meeting. “As the matter is subjudice, we will prefer not to comment on your queries,” the spokesman said over the phone.
A set of e-mailed questions remained unanswered by the bank. Madhu Kapur moved the Bombay high Court against the bank in early June. Since then, the stock price has plunged nearly 40 per cent.
The banking sector index on the BSE has dropped around 9 per cent in the same period. Analysts believe that the stock has corrected mainly due to concerns over sustainability of the bank’s profitability amid changing interest rate scenario in the banking sector.
“Since the dispute is public, some investors would be worried. However, larger concerns on the banking sector as a whole could be the major reason. It would be difficult to assess how much the legal battle would be impacting the stock,” said Vaibhav Agrawal, Senior Analyst, Angel Broking.
YES Bank shares ended 2.95 per cent weaker at Rs 299.35 a share on the Bombay Stock Exchange on Monday.
The High Court will further hear the case on August 12.
beena.parmar@thehindu.co.in
Source: Financial Express
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