On Friday, Yes Bank Ltd assured investors that the bank’s financial position was stable, despite the stake sale by one of its promoter entity Morgan Credits Private Ltd.(MCPL).
“The board of directors of Yes Bank would like to state that the financial position of the bank is sound and stable, its operating performance continues to be robust and its growth plans stay firmly on track,” said the bank in a notice to the exchanges.
MCPL sold zero-coupon NCDs worth Rs 1,160 crore to RNAM. “We have concluded the stake sale solely to deleverage MCPL. Through prepayment of NCDs to RNAM, we have significantly reduced our borrowing in MCPL in an accelerated manner,” said Radha K. Khanna, Director, MCPL.
Following the sale, total promoter holding in Yes Bank will fall from 18% to 15.7% in further compliance with the Reserve Bank of India’s regulatory level of 15%.
Read EquityPandit’s Nifty Bank Outlook for the Week