Shagun Gogia Backs Yes Bank Management; Says Ready To Dilute Stake
Bank is at an “advanced stage” of getting an investor, says board member Gogia.
Private lender Yes Bank Ltd.'s single-largest shareholder and co-promoter, the late Ashok Kapur's daughter Shagun Gogia said the issues of governance and transparency are fully dealt with now, extending full support to the new management.
Gogia, who was recently inducted to the board of the troubled private sector lender, also said her family was fine with lowering their shareholding below the present 8.33 percent in case a big investor comes on board at the end of the ongoing capital-raising exercise.
The bank, among the newest in the industry, has been in trouble for over a year now, after the Reserve Bank of India turned down the re-appointment of co-promoter Rana Kapoor as chief executive and managing director, on worries over corporate governance and risk management, among others.
The present management is led by chief executive Ravneet Gill who took charge in March after Kapoor was asked to leave by Jan. 31 by the monetary authority in August 2018.
"Regulatory compliance, risk management and governance functions are fully streamlined at present at the bank and I am 100 percent confident that governance and transparency issues are also behind us," Gogia told PTI.
"I'm also confident that we will shed our past and transform into the future," she added, commenting on the bank's journey ahead as it looks to on-board new investors that may include a global tech giant.
On this, she said the bank is at an "advanced stage" of getting an investor and will be keeping the regulator in loop as the talks progress.
Whether her family is ready to trim its holding or relinquishing the position of being the largest shareholder, she replied in the affirmative.
"I don't view being the largest shareholder as a tag and will be fine diluting it [the stake] after the fund raising, if required and if it serves the interest of the bank better," she said.
"Our family has not decided a floor to which we can go down to in the event of new fund infusion. We will do whatever is in the best interest of the bank," she said, adding that 95 percent of the Kapur family's wealth is in Yes Bank shares.
She said, given the strong business franchise, there are many investors who are keen to enter the bank. She, however, did not name the investors or spell out the quantum of the money that it will be raised.
It can be noted that Rana Kapoor group's holding in the bank has come down to 0.80 percent after the invocation of a pledged shares by an asset manager, from whom the family had borrowed by pledging shares. He also made some distress sale of his shares in recent months. At the time of leaving the bank this January, he had held close to 13 percent.
When asked about the 'promoter' tag, she said it is governed by Securities and Exchange Board of India and her family will continue to be recognised as one even in the case of the capital raising.
She, however, declined to comment if the Kapoor family will cease to have a say in board appointments as his holding is now under one percent. The current board has one member each nominated by both the families and a third-one jointly nominated.
The bank scrip had fell 7 percent to Rs 38.10 on the BSE as against a gain of 0.2 percent on Sensex.