Wednesday, June 23

Rana Kapoor-owned Morgan Credits pays Rs 792 crore to RNAM

MUMBAI: The Rana Kapoor-controlled Morgan Credits (MC) on Tuesday said it has paid Rs 792 crore to Reliance Nippon Asset Management (RNAM).

The entity had last week sold 2.3 per cent of the promoter holding in the bank in a bulk deal to reduce the Kapoor group’s ownership of the embattled bank to 7.4 per cent.

Yes Bank has been sailing in choppy waters since the RBI curtailed its promoter-chief executive Kapoor’s term on corporate governance concerns. Many of the bank’s past lending bets under Kapoor are haunting the earnings now and keeping the share prices depressed.

MC had raised money by issuing non-convertible debentures, which were subscribed by various schemes of RNAM and were due in April 2021, a Morgan Credits statement said.

The payment of Rs 792 crore constitutes a “substantial portion” of the outstanding NCDs and has been done with interest, it said.

The NCDs is the only borrowing of MC, the statement said. According to media reports, MC owned only 2.76 per cent of the bank as of August 15 this year.

At the peak of the crisis at the bank, Kapoor had equated his Yes Bank holding with precious diamonds and affirmed that he will not sell the same.

According to reports, the borrowings were done by the promoter group entities for carrying out other business activities.

The Yes Bank scrip gained 1.26 per cent to close at Rs 56.05 a piece on the BSE in a flat market.

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