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<ul><li>The Enforcement Directorate is currently investigating <keyword id="1702687" type="ORGANIZATION" weightage="20" keywordseo="YES-Bank-founder">Yes Bank founder</keyword> <keyword id="128581" type="PERSON" weightage="20" keywordseo="Rana-Kapoor">Rana Kapoor</keyword>.</li><li>They suspect that he's responsible for ₹30,000 crore worth loans at Yes Bank that went bad.</li><li>Here's the full story of everything that the ED's investigation has revealed so far about how Rana Kapoor gave out those loans and pocketed the kickbacks.</li></ul>Yes Bank founder Rana Kapoor shunned the family jewellery businesses to break into the tough world of private banking in India. However, his choice of loans, heady risks and illegal practices of lending against kickbacks brought the country’s fourth-largest lender under the lens of investigative agencies. A year after he entered the billionaire club, Kapoor’s world <a href="https://www.businessinsider.in/business/news/the-fall-of-yes-bank-founder-rana-kapoor-from-a-billion-dollars-to-facing-a-4300-crore-investigation/articleshow/74547669.cms">started to crumble</a> when the Reserve Bank of India (RBI) asked Kapoor to step down from his position as CEO of Yes Bank by January 2019. By July, Yes Bank’s share price had dropped by 78% leaving Kapoor with a net worth of $377 million. 
 
 
 <div type="image" title="rana6" msid="74645019" hostid="261" caption="&amp;lt;p&amp;gt;Rana Kapoor addresses his first press conference after taking charge as ASSOCHAM President in New Delhi on 26 July 2013&amp;lt;/p&amp;gt;"></div>







 But the bank had lost much more as ₹30,000 crore worth loans went bad, and the Enforcement Directorate (ED) held him responsible. After the <a href="https://www.businessinsider.in/finance/news/yes-bank-founder-rana-kapoor-arrested-by-ed-on-charges-of-money-laundering/articleshow/74534138.cms">ED arrested him</a>, it has identified 78 shell corporations that are suspected of receiving kickbacks in exchange for loans that no other bank would touch. According to the investigation, as his depositors lost money, he became richer by ₹5,000 crore only in kickbacks. With funds routed through shell companies and benami accounts, Kapoor <a href="https://www.businessinsider.in/business/news/a-reported-list-of-rana-kapoors-assets-include-a-30-million-investment-in-uk-a-yacht-and-five-properties-in-delhi/articleshow/74594273.cms">bought hotels in New York</a> and London, bungalows in Delhi, flats in Mumbai and expensive paintings. The ED's investigation also revealed that, Kapoor who played fast and hard with rules, also failed to insulate his family from harm. His wife Bindu and <a href="https://www.businessinsider.in/finance/news/rana-kapoors-daughters-who-said-no-to-banking-are-now-in-the-dock-with-yes-bank-crisis/articleshow/74549729.cms">three daughters</a> — Roshini, Radha and Rakhee — are at the helm of most of these shell companies, and CBI has its claws around them too. The case of money laundering The saga of crony capitalism started to come to light last week when Kapoor was booked under the Prevention of Money Laundering Act (PMLA) on March 6 to look into the connection between him and Yes Bank’s bad loans. 
 
 
 <div type="image" title="rana7" msid="74645029" hostid="261" caption="&amp;lt;p&amp;gt;Rana Kapoor arrested at his residence in Mumbai by the ED&amp;lt;/p&amp;gt;"></div>







 The ED <a href="https://www.businessinsider.in/business/news/yes-bank-founder-rana-kapoor-questioned-on-money-laundering-case-house-raided-by-ed/articleshow/74522297.cms">raided his residence</a> at Samudra Mahal in Worli to search for evidence and grilled him for hours. The following day, <a href="https://www.businessinsider.in/business/news/ed-continues-questioning-yes-bank-founder-rana-kapoor/articleshow/74525680.cms">officials took Kapoor</a> back to ED’s Ballard Pier office in Mumbai. During the course of the interrogation, the agency expanded its probe to include his daughters. They allegedly own multiple companies that received kickbacks from different corporates who received loans from Yes Bank. 
 
 
 <div type="image" title="rana9" msid="74645036" hostid="261" caption="&amp;lt;p&amp;gt;Rana Kapoor reprimanded into ED Custody until March 16&amp;lt;/p&amp;gt;"></div>







 The ₹600 crore kickback from DHFL One of the companies suspected by the ED of giving kickbacks to Kapoor’s companies is DHFL — <a href="https://www.businessinsider.in/finance/news/yes-bank-founder-rana-kapoor-arrested-by-ed-on-charges-of-money-laundering/articleshow/74534138.cms">accused of misappropriating funds</a> worth ₹25,000 crore, which ultimately led to its downfall. Yes Bank had doled out a loan of ₹3,750 crore directly to DHFL and another loan worth ₹750 crore to RKW Developers, a subsidiary of DHFL. However, when the real estate company defaulted on its loan, Kapoor did not initiate any action. 
 
 
 <div type="image" title="rana4" msid="74645060" hostid="261" caption="&amp;lt;p&amp;gt;Rana Kapoor (C) with wife Bindu Kapoor (L) and daughter Roshni Kapoor (R)&amp;lt;/p&amp;gt;"></div>







 The ED now suspects that his restraint was a result of <a href="https://www.businessinsider.in/business/news/ed-questions-yes-bank-founder-rana-kapoor-for-second-day-expands-raids/articleshow/74530525.cms">kickbacks to the tune of ₹600 crore</a> to Doit Urban Ventures — a dummy corporation owned by Kapoor and two of his daughters. Nearly 80 shell companies set up to receive bribes and buy bungalows Two days into the interrogation Kapoor was arrested for not cooperating with the authorities. Meanwhile, 10 teams of the CBI were involved in its <a href="https://www.businessinsider.in/business/news/yes-bank-scam-cbi-carries-out-searches-at-7-locations-in-mumbai-loc-issued/articleshow/74554915.cms">search operations</a> spread across the south Mumbai neighbourhood. The ED found that Rana Kapoor and his family had more than <a href="https://www.ndtv.com/india-news/yes-bank-crisis-probe-agency-says-rana-kapoor-along-with-his-family-owned-78-shell-companies-2194031">78 shell companies </a>set up to receive bribes and invest in properties under the radar. All of these companies were either directly under Kapoor’s control or under the control of his wife and daughters. His wife, Bindu, was the director of at least 42 companies. 
 
 
 <div type="image" title="25110ed6046e3eb4597f509f58f1c4eb_edited" msid="74645069" hostid="261" caption="&amp;lt;p&amp;gt;Rana Kapoor&amp;#39;s property at Amrita Shergil Marg&amp;lt;/p&amp;gt;"></div>







 The companies allegedly invested in properties with a net worth of over ₹2,000 crore. An official told PTI that the current market value of those properties could be <a href="https://www.ndtv.com/india-news/yes-bank-crisis-probe-agency-says-rana-kapoor-along-with-his-family-owned-78-shell-companies-2194031">well above ₹5,000 crore.</a> His shady overseas properties include two luxury hotels — one in New York worth over $20 million and one in London worth nearly £30 million — two residential apartments in London valued at £15 million apiece, and a yacht. In India, Kapoor owns six bungalows in Delhi’s upscale neighbourhoods, including Jor Bagh, Hauz Khas and Kautilya Marg. Two were bought by a company called Bliss Adobe, which had Bindu as its director. The property on Amrita Shergil Marg was auctioned off by Avantha Realty when Bliss Abode picked it off the market. Coincidentally, Yes Bank’s exposure to Avantha Realty was ₹500 crore. The other house on Sardar Patel Marg was bought by the Kapoor’s shell corporation Bliss Home. ED’s investigation noted that the house was formerly owned by Vijay Mallya. ED also found that Kapoor owns six flats and a parcel of land in Mumbai and its suburbs. Priyanka Gandhi Vadhra and the painting by MF Hussain During the search of his Mumbai residence, the ED seized nearly 50 pieces of art from his home. One of the paintings — <a href="https://www.businessinsider.in/politics/india/news/congress-raises-question-over-rana-kapoors-links-with-bjp/articleshow/74544228.cms">a portrait of former prime minister Rajiv Gandhi by MF Hussain</a> — belonged to Congress leader Priyanka Gandhi Vadra. The Congress party says that the deal between Vadra and Kapoor was a transparent transaction of ₹2 crore. The payment was made through cheque and was reflected in income tax returns. However, the ED is still looking into whether the painting was Vadra’s to sell or belonged to the All India Congress Committee (AICC). It’s also looking into whether the provenance certificate — which authenticates the artwork — was signed by Vadra and under what circumstances. Can’t leave the country Kapoor and his family currently can’t leave the country. A look-out notice was also issued in their names on March 12 along with DHFL promoter Kapil Wadhawan and Dheeraj Wadhawan. Roshini, Kapoor’s youngest daughter, was stopped at the CSM International Airport in Mumbai trying to catch a flight to London. Kapoor’s arrest has been extended to March 16 during which he will be in the custody of the ED. The Central Bureau of Investigation (CBI) is also loading its guns. It has begun a probe into the Yes Bank affairs but has not elaborated on the nature of the probe. The Income Tax Department is next in line to initiate action against Kapoor and others for tax evasion and possession of alleged undeclared foreign assets. Meanwhile, the Odisha unit of the Bharatiya Janata Party (BJP) has asked for a separate probe to look into the alleged conspiracy behind the deposits of ₹545 crore of the <a href="https://www.businessinsider.in/business/news/concern-over-lord-jagannaths-rs-545-crore-in-yes-bank/articleshow/74514318.cms">Shree Jagannath Temple</a>. Money laundering, tax evasion, fraud and insider trading— the founder of India’s fourth-largest private sector bank Rana Kapoor has been accused of it all. And, the evidence against him is piling up. While depositors are all set to get <a href="https://www.businessinsider.in/india/news/yes-bank-withdrawal-limit-to-be-lifted-in-three-working-days/articleshow/74624128.cms">relief this week</a> as moratorium lifts, Kapoor who claims he has “no clue” why RBI restricted withdrawals - will stay with the authorities trying to explain how he sunk crores into companies that can best be described as money pits. See also: <a href="https://www.businessinsider.in/finance/news/yes-bank-crisis-and-its-domino-effect-on-bonds-mutual-funds-and-other-corporate-defaults/articleshow/74586858.cms">Yes Bank crisis and its domino effect on bonds, mutual funds and other corporate defaults</a> <a href="https://www.businessinsider.in/business/news/the-fall-of-yes-bank-founder-rana-kapoor-from-a-billion-dollars-to-facing-a-4300-crore-investigation/articleshow/74547669.cms">The fall of Yes Bank founder Rana Kapoor from a billion dollars to facing a ₹4300 crore investigation</a> <a href="https://www.businessinsider.in/finance/news/rana-kapoors-daughters-who-said-no-to-banking-are-now-in-the-dock-with-yes-bank-crisis/articleshow/74549729.cms">The three Kapoor sisters who said ‘no’ to banking are now in the dock with Yes Bank crisis</a>

Rana Kapoor's hotels, bungalows, flats and paintings — everything that Yes Bank founder is suspected for buying with kickbacks

Mumbai, Mar 7 () The Enforcement Directorate on Saturday continued questioning Yes Bank founder Rana Kapoor in connection with a money laundering probe against him and others, officials said. They said Kapoor was brought to the agency's office in the Ballard Estate area Saturday afternoon. The ED had searched Rana's residence in the upscale 'Samudra Mahal' complex in the Worli area on Friday night and had grilled him there too. The questioning of Kapoor is continuing, they said. The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned non-performing assets (NPAs), they said. Action against Kapoor is being conducted under the Prevention of Money Laundering Act (PMLA) by the ED. The central agency is also probing Kapoor's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts. Other alleged irregularities are also under the agency's scanner, including the one related to the alleged PF fraud in the Uttar Pradesh power corporation, they added. The CBI has recently taken over investigation into the Rs 2,267-crore Employees' Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Finance Corporation (DHFL). The ED action came after the Reserve Bank on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect. Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. NES SMNSMN

ED continues questioning Yes Bank founder Rana Kapoor

Mumbai, Mar 7 () The Enforcement Directorate questioned Yes Bank founder Rana Kapoor for the second day on Saturday in connection with a money laundering probe against him and others and raided some more locations in Delhi and Mumbai, officials said.They said Kapoor was brought to the agency's office in Ballard Estate area after noon.He has been questioned for over seven hours and his statement recorded by the agency under the Prevention of Money Laundering Act (PMLA), the officials said.The premises of Kapoor's three daughters in Delhi and Mumbai were also searched on Saturday to gather more information and evidence, they added.The ED had searched Rana's residence in the upscale 'Samudra Mahal' building in the Worli area on Friday night and grilled him there too.The questioning of Kapoor is continuing, the officials said.The case against Kapoor is linked to the scam-hit Dewan Housing Finance Corporation (DHFL) as the loans given by the bank to the company allegedly turned non-performing assets (NPAs), they said.A Rs 600-crore worth loan extended by the DHFL to an entity is also at the centre of the ED probe, they added.Action against Kapoor is being conducted under the PMLA.According to the officials, the central agency is also probing the Yes Bank founder's role in connection with the disbursal of loans to some corporate entities and the subsequent alleged kickbacks reportedly received in his wife's accounts.Other alleged irregularities are also under the agency's scanner, including the one related to the alleged Employees' Provident Fund (EPF) fraud in Uttar Pradesh Power Corporation Limited (UPPCL), they said.The CBI recently took over the investigation into the Rs 2,267-crore EPF fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in DHFL.The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. NES DIVDIV

ED questions Yes Bank founder Rana Kapoor for second day; expands raids

<ul><li>The <keyword id="6357808" type="DEFINITION" weightage="20" keywordseo="enforcement-directorate">Enforcement Directorate</keyword> (<keyword id="12163" type="COMPANY" weightage="20" keywordseo="Ed">ED</keyword>) filed a money laundering case and carried out searches at the residence of the bank's founder <keyword id="128581" type="PERSON" weightage="20" keywordseo="Rana-Kapoor">Rana Kapoor</keyword>.</li><li>The central financial probe agency also issued a look out circular against Kapoor, so that he does not leave the country.</li><li>The ED's action comes a day after the RBI superseded the <keyword id="45660" type="CITY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawal by account holders for a month.</li></ul>The Enforcement Directorate (ED) filed a money laundering case and carried out searches at the residence of the bank's founder Rana Kapoor, officials said. The central financial probe agency also issued a look out circular against Kapoor, so that he does not leaves the country. A senior ED official told IANS, "Yes, the agency registered a case of money laundering in the Yes Bank matter." Confirming the searches carried out at Kapoor's residence in Mumbai by the central financial probe agency, the official said, "Yes, the searches started late in the evening at his residence." Another ED official, also related to the probe said the agency has issued LOC against Kapoor, so that the does not leaves the country. The copy of the LOC has been sent to the airport's with details of his passport. The ED's action comes a day after the RBI superseded the Yes Bank board for 30 days and appointed an administrator, putting a cap of Rs 50,000 on withdrawal by account holders for a month. The RBI said that the bank's board was superseded "owing to serious deterioration in the financial position of the bank". Former SBI CFO Prashant Kumar was appointed as administrator of Yes Bank. Yes Bank has over 1,000 branches and 1,800-plus ATMs across the country which are under severe stress after the crisis erupted last night. Earlier in the day, Union Finance Minister Nirmala Sitharaman said that the bank was put under watch since 2017 and developments relating to it were being monitored on a day-to-day basis. "Since 2017, the central bank noticed governance issues and weak regulatory compliance at Yes Bank, besides wrong asset classification and risky credit decisions," the Finance Minister said. The bank took many risky credit decisions, and the RBI had advised change in management, she said, adding such decisions were taken in the interest of the bank's health. A new CEO was appointed in September 2018 and clean up of the bank started and the investigative agencies too found irregularities, she said. Sitharaman said the RBI has been asked to assess the causes of problems and identify the role played by individuals. The restructuring scheme will be fully effective within 30 days, she said, adding that the State Bank of India has expressed willingness to invest in Yes Bank. Kapoor was present at his Samudramahal residence when the searches were conducted, the official said. ED officials also questioned Kapoor about financial dealings and properties. Kapoor's role in the disbursal of loan to a corporate entity and kickbacks allegedly received in her wife's bank account are also being probed.

YES Bank founder Rana Kapoor questioned on money laundering case, house raided by ED

Continued uncertainties on capital raising resulted in two domestic rating agencies downgrading private sector lender <keyword id="45660" type="DOMAIN" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> on Thursday. The bank, which has had a tumultuous year since the RBI terminated the term of its co-founder chief executive <keyword id="128581" type="PERSON" weightage="20" keywordseo="Rana-Kapoor">Rana Kapoor</keyword>, has not been able to make progress in its equity raising even after claiming that it has investors willing to pump in USD 3 billion. India Ratings said its downgrade on the bank's long-term issuer rating to 'Ind A' from 'Ind A+', accompanied by a rating watch negative outlook on three instruments, is due to "inadequate progress" on both the quantum and pace of equity infusions.
 The bank had last week said its board is favourably considering a USD 500 million funding offer from Citax Holdings, while a USD 1.2 billion offer from Erwin Singh Braich, a little-known Canadian investor of Indian descent, is still under negotiations.
 The rating agency said the capital is essential for taking the credit cost hit coming its way because of an accelerated recognition of bad assets initiated under new chief executive Ravneet Gill.
 "In the absence of improvements on the capital side, the ability of the bank to manage its asset and liability maturities might be tested further," the agency said, noting that is likely to face balance sheet expansion challenges in the short-to-medium term.
 The bank's low-rated assets will continue to slip into the non-performing assets category, and the need to set aside money for the same along with new slippages will constrain the profitability of the bank, which has shown reported losses in two of the three quarters in 2019.
 The capital constraints had resulted in a 7 per cent decline in the bank's loan book in the September quarter, and the prime reason cited by the management to expedite the infusion was to get into the business-as-usual mode.
 After claiming USD 3 billion of investor interest, the bank had informed that it is actively considering USD 2 billion of capital raise and also named the investors.
 "...clarity is awaited on the potential investors, quantum and the timelines. Furthermore, the various approvals that the bank and/or the investors may require could extend the timeline of the proposed equity infusion," it said.
 The agency appreciated the bank's efforts on the liability management.
 Its peer <keyword id="6354972" type="DOMAIN" weightage="20" keywordseo="icra">Icra</keyword> also downgraded the bank's rating on various instruments and kept the outlook at negative for the same reasons. The agency said it will continue to monitor the capital raising, liquidity/funding profile and asset quality position of the bank, and warned that a continued weakening on the parameters will remain negative rating triggers.
 Despite the negative news on the rating front, Yes Bank's shares gained 6.74 per cent to close at Rs 49.90 apiece on the BSE, against a rise of 0.28 per cent on the benchmark. AA RAM HRS

Yes Bank's lack of funds leads to ratings downgrade

<ul><li>The central bank signed off on <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword>’s financial statements for the year ended March 2018 in its latest <keyword id="7324747" type="UNKNOWN" weightage="20" keywordseo="Risk-Review">risk review</keyword>.</li><li>The clean chit from the RBI will reassure investors as the bank attempts a phase of recovery under new CEO Ravneet Gill.</li><li>Yes Bank's shares surged nearly 30% in the first session of trading today. </li></ul>Late last evening, Yes Bank, one of India’s largest private sector lenders, <a href="https://www.yesbank.in/media/press-releases/divergence-in-asset-classification-and-provisioning-for-position-as-on-march31-2018">declared </a>that the <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> had cleared it of under-reporting <keyword id="142154" type="PERSON" weightage="20" keywordseo="bad-loans">bad loans</keyword>. The central bank signed off on Yes Bank’s financial statements for the year ended March 2018 in its latest risk review, indicating the lender’s compliance with reporting and asset provisioning norms. As a result, Yes Bank's share price soared by nearly 30% in the first session of trading today amid a renewed sense of confidence in the lender. The news is welcome for Yes Bank. The lender had a rather tumultuous 2018, losing more than <a href="https://www.businessinsider.in/one-of-indias-largest-private-banks-has-lost-more-than-half-its-market-value-in-37-days/articleshow/65991141.cms">half its market share</a> in less than 1.5 months between August and September as a result of two things - the RBI’s discovery that it had under-reported tens of billions of non-performing loans and its subsequent refusal to grant CEO <keyword id="128581" type="PERSON" weightage="20" keywordseo="Rana-Kapoor">Rana Kapoor</keyword> an extension to his term. In 2015-16, the RBI found a net divergence of <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-clears-yes-bank-of-divergence/articleshow/67982541.cms">₹42 billion</a> in its assessment of Yes Bank’s bad loans, which subsequently ballooned to ₹64 billion the following year. While it might be too late to reinstate Rana Kapoor, the clean chit from the RBI will reassure investors as the bank attempts a phase of recovery <a href="https://www.businessinsider.in/yes-bank-stock-jumps-on-new-ceo-appointment/articleshow/67685861.cms">under new CEO Ravneet Gill</a>. It will pave the way for the bank to raise capital from the market and prevent a downgrade from ratings agencies. For the quarter ended December 2018, Yes Bank posted <a href="https://www.yesbank.in/pdf/q3fy2018_19_press_release_mn_pdf">a 7% decline</a> in net profit to ₹10 billion while net provisions stood at ₹50.8 billion - more than 90% of which were taken for exposure to IL&amp;FS or a “stressed infrastructure conglomerate” . More importantly, the growth in its gross non-performing assets was curtailed, as the bad loan ratio rose to 2.1% from 1.72% in the year-ago quarter. SEE ALSO: <a href="https://www.businessinsider.in/one-of-indias-largest-private-banks-has-lost-more-than-half-its-market-value-in-37-days/articleshow/65991141.cms">One of India’s largest private banks has lost more than half its market value in 37 days</a> <a href="https://www.businessinsider.in/yes-bank-stock-jumps-on-new-ceo-appointment/articleshow/67685861.cms">Yes Bank's 15-month journey from regulatory crackdown to finding a new CEO</a> <a href="https://www.businessinsider.in/yes-banks-problems-get-further-compounded-as-its-chairman-is-forced-to-resign-amid-a-corruption-probe/articleshow/66634836.cms">Yes Bank’s problems get further compounded as its chairman is forced to resign amid a corruption probe</a>

India’s central bank says that Yes Bank is no longer lying about its bad loans

Mumbai, May 7 () Having recognised a huge quantum of non-performing assets (NPAs) in the past few quarters, Yes Bank has created a dedicated stressed asset management vertical to recover and resolve such accounts that have touched Rs 50,000 crore, a top official said on Thursday. The bank has also appointed six merchant bankers for a proposed capital raising exercise of up to Rs 15,000 crore in which it is aiming to get new investors, including global private equity funds, into the bank, its Managing Director and Chief Executive Officer Prashant Kumar told . Yes Bank's board had to be superseded by the Reserve Bank of India (RBI) and the government earlier this year after alleged mismanagement under its founder CEO Rana Kapoor. It was bailed out by a string of lenders led by SBI, who pumped in Rs 10,000-crore fresh capital to keep it afloat. Kumar started off by recognising a huge pile of assets as bad, resulting in a massive Rs 18,000 crore loss for the December 2019 quarter. "We have huge NPAs of nearly Rs 50,000 crore which is very large and needs a focused approach for recovery and resolutions," Kumar said adding that the bank is hoping to either recover or resolve up to Rs 8,000 crore in capital through the vertical in 2020-21. Recovery and resolution of the stuck money can help future profits through writebacks of already made provisions against assets and also help the capital position of the bank, which stood at a very low 8.5 per cent as of March 31, 2020, Kumar said. The vertical has 100 dedicated executives who are well versed with NPA management, he said adding that if required, the bank may also hire experienced hands for this activity. The team will work "surgically" towards stressed asset resolution with their specialised skill sets and also unclog management bandwidth such that the leadership can focus on growing the bank. At a later stage, the bank will look at segregation of assets or management to facilitate strategic spin off of these assets to a separate legal entity or sale to asset reconstruction companies, it said. Meanwhile, on the capital raising plans, Kumar said the bank has a mandate to raise up to Rs 15,000 crore in fresh capital from various routes and had invited bids from merchant bankers. After a scrutiny and presentations, it has appointed six rainmakers to help sell the issue, Kumar said, declining to give a timeline by when the capital will be raised. "I will want the capital tomorrow," he quipped, and added that the raise will happen as soon as possible. Kumar said that even in the gloomy times of COVID-19 pandemic, there are investors who are willing to take long-term bets, and added that the focus of the exercise is to tap newer investors beyond the ones that were involved in the bailout. If not for the COVID-19 pandemic, the management would have guided towards a normalisation in NPA additions going ahead as well, Kumar said adding that the legacy stress in the book has been recognised. There will not be heightened provisions in the time ahead, he said adding that at 74 per cent, the provision coverage ratio is at par with the industry. The bank is targeting to grow the loan book by 10 per cent in 2020-21, which will involve a 20 per cent growth in retail segment and a de-growth in the corporate segment, Kumar said. This will lead to the share of retail and small business loans to grow to a level of 60 per cent in the next two years from the current 44 per cent, he said. On the liabilities front, a greater focus will be on getting retail deposits, Kumar said adding that while the trust has come back within them after the heavy withdrawals up to March, there is a competition from other saving instruments which may not result in a flow of money to banks. The bank has reduced its term deposits rates by up to 0.25 percentage points across tenors in the last few days, and will also consider a reduction in its aggressive saving bank account deposit rate to reflect the market realities. When asked if it will be as low as 2.75 per cent on the saving front, Kumar said that it will go for a higher level of up to 4 per cent interest, calling it "apt level" that does not put a strain on the depositor as well. Initiatives of cost rationalisation, like relocating branches and ATMs to lower rental locations are also on, Kumar said adding that once things normalise on the revenue generation front, the cost-to-income ratio should come down to 40 per cent levels. It is also targeting to take its net interest margin to 3 per cent from the 1.9 per cent in a quick time as more accounts start delivering interest payments, Kumar said adding that net interest margins at that level is a necessity for any lender. Helped by a massive over Rs 6,200 crore gain arising out of a controversial write-off of bond investors' investment, it had reported a net profit of Rs 2,629 crore for the March quarter late on Wednesday. The bank's shares on Thursday gained 6.83 per cent to close at Rs 28.15 apiece on the BSE. AA HRS

Yes Bank creates stressed asset management vertical to resolve NPA accounts

Mumbai, Mar 26 () Yes Bank founder Rana Kapoor,currently in judicial custody after arrest on money launderingcharges, moved a bail application on Thursday claiming hisprevailing medical condition puts him at the risk ofcontracting coronavirus in jail.In the plea filed through his lawyer Subash Jadhav,Kapoor claimed he was sufferinga chronic immunodeficiencysyndrome, which causes recurrent lung, sinus and skininfections.The 62-year-old banker also claimed to be sufferingfrom severe hypertension, anxiety and depression for the last18 months, which is in large part being treated in hispresence of his family.This, combined with bronchial asthma since childhood,which still requires inhalers, puts him at high risk of asevere lung infection which can lead to death, the bail pleasaid.The plea further stated that the present situation ofcoronavirus can lead to severe lung infection and even deathof the applicant as the disease is more like to infect personsabove 60 years ofage, with low immunity and long-standingrespiratory problem."It is submitted that the aforesaid disease requiresthe applicant to consume carefully monitored and home cookedfood in order to combat and control the said disease. Theapplicant is also required to stay at home," the plea said.The PMLA court, before which the plea was filed,posted the matter for hearing on Monday and directed theofficials of Taloja jail in Navi Mumbai, where Kapoor islodged, to submit his medical records.Kapoor was arrested by the Enforcement Directorate(ED) under the Prevention of Money Laundering Act (PMLA)earlier this month.According to the ED, loans of Rs 30,000 crore weregiven by Yes Bank when Kapoor was at its helm, and of these,advances of Rs 20,000 crore became bad loans.The ED has accused that Kapoor, his family members andothers got benefits worth Rs 4,300 crore through companiescontrolled by his family as kickbacks for sanctioning hugeloans.He is also accused of receiving bribes for going easyon loans given to a few big corporate groups that had turnedinto non-performing assets (NPAs). AVIRSY RSY

I may contract coronavirus in jail, grant me bail: Kapoor

Mumbai, <keyword id="40530" type="General" weightage="20" keywordseo="tina-ambani" source="Orion">Tina Ambani</keyword>, the wife of Reliance ADA Group Chairman <keyword id="9171" type="General" weightage="20" keywordseo="anil-ambani" source="Orion">Anil Ambani</keyword>, on Tuesday appeared before the Enforcement Directorate (ED) here for questioning and recording her statement in connection with an investigation linked to the alleged contravention of the foreign exchange law, official sources said. Anil Ambani had recorded his statement in the case on Monday under sections of the Foreign Exchange Management Act (FEMA) and he is expected to appear before the federal agency again later this week for completion of the exercise. The investigation against the couple pertains to the possession of certain alleged undisclosed assets abroad and linked movement of funds, the sources said. Anil Ambani's alleged links to some offshore companies based in Jersey, British Virgin Islands and Cyprus are under the probe scanner of the ED. He had been questioned by the agency in 2020 in a money laundering case against Yes Bank promoter Rana Kapoor and others. In August last year, the income-tax department issued a notice to Anil Ambani under the anti-black money law for allegedly evading Rs 420 crore in taxes on undisclosed funds of more than Rs 814 crore held in two Swiss bank accounts. The Bombay High Court in March ordered an interim stay on this I-T show-cause notice and penalty demand.

Anil Ambani's wife Tina Ambani appears before ED in FEMA case

New Delhi, Mar 11 () Anil Ambani-led Reliance Group on Wednesday said its entire debt from troubled Yes Bank is fully secured and was availed in the ordinary course of business. In a statement, the group said it is committed to honouring repayments of all its borrowing from Yes Bank through its asset monetisation programme. The Group, it said, has "nil direct or indirect exposure to Rana Kapoor, former CEO of Yes Bank, or his wife or daughters, or any entities controlled by Rana Kapoor or his family." Reliance Group along side Subhash Chandra's Essel Group were among the large borrowers that Finance Minister Nirmala Sitharaman had named after Yes Bank's board was superseded by the Reserve Bank of India (RBI) and withdrawal restrictions placed. As many as 44 companies belonging to 10 large business groups reportedly accounted for bad loans of Rs 34,000 crore of Yes Bank. Nine firms of Anil Ambani Group reportedly owed Rs 12,800 crore while Essel Group had unpaid loans of Rs 8,400 crore. Other companies on the list include DHFL Group, Dewan Housing Finance Corporation, Jet Airways, Cox &amp; Kings, and Bharat Infra. Without giving the loan it has from Yes Bank, Reliance said: "Its entire exposure to Yes Bank is fully secured and transacted in the ordinary course of business." "Reliance Group is committed to honouring repayments of all its borrowings from Yes Bank Ltd through its various asset monetisation programmes which are all at advanced stages," the statement said. ANZ MR

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Rana Kapoor's hotels, bungalows, flats and paintings — everything that Yes Bank founder is suspected for buying with kickbacks

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ED continues questioning Yes Bank founder Rana Kapoor

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ED questions Yes Bank founder Rana Kapoor for second day; expands raids

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YES Bank founder Rana Kapoor questioned on money laundering case, house raided by ED

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Yes Bank's lack of funds leads to ratings downgrade

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India’s central bank says that Yes Bank is no longer lying about its bad loans

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Yes Bank creates stressed asset management vertical to resolve NPA accounts

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I may contract coronavirus in jail, grant me bail: Kapoor

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Anil Ambani's wife Tina Ambani appears before ED in FEMA case

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Reliance Group said its entire debt from Yes Bank is secured; committed to repay

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