After being arrested by the Enforcement Directorate under the Prevention of money laundering act (PMLA), Yes Bank founder Rana Kapoor on Sunday was confronted by Republic TV while visiting the hospital for physical examination. Visuals show the ex-MD of Yes Bank hiding his face and being shunted into the car by ED officials, proceeding to the hospital. He is currently being taken from the hospital to be produced in court on Sunday.
Rana Kapoor was questioned by the ED sleuths for over 20 hours after the central agency raided his residence on Friday night. As per reports, the Enforcement Directorate is investigating the case of alleged kickbacks of Rs 600 crore received by a shell company controlled by the Yes Bank founder and his two daughters. Media reports suggest that the shell company Doit Urban Ventures received kickbacks from Dewan Housing Financial Corporation Ltd (DHFL) for loans worth Rs 4,450 crore granted by Yes Bank. The ED suspects that the amount of Rs 4,450 crore was siphoned off by DHFL through 79 dummy companies, including Doit Urban Ventures.
SBI chairman Rajnish Kumar addressed a press conference assuring the state-run bank's commitment to invest in the stressed commercial lender. While Kumar did assure that SBI depositors will not be affected by the investment, he expressed that SBI would prefer holding its mandatory 26% stake investment and look for other co-investors for the remaining stake. Talking about SBI's potential investment, he said that while the bank may not pick the entire 49%, it will invest a minimum of 26% state - attune to Rs 5200 crores.
Yes Bank which has been facing a crisis as it accumulated many bad loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways and Cafe Coffee day, was put on a moratorium by RBI for a period of 30 days, capping its withdrawals at Rs 50,000. The RBI has also announced ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ altering the authorised capital to Rs 5000 crores and 2400 equity shares standing at Rs 10 each. Moreover, SBI which leads the consortium of banks investing in the 'reconstructed bank' will not reduce its holding below 26% before the completion of three years.