Morgan Credits Pvt Ltd (MCPL), part of the promoter group of YES Bank has sold 2.3 percent shareholding in the bank on Thursday. The proceeds will be solely utilised to prepay substantial portion of outstanding non-convertible debentures (NCDs) of MCPL subscribed by various schemes of Reliance Nippon Life Asset Management Company (RNAM).

It is noteworthy that Morgan Credit held 3.03 percent stake in YES Bank prior to this sale as part of the promoter group holding.

With MCPL stake sale, the promoter group ownership in YES Bank will fall to 15.7 percent versus 18 percent earlier.

The stake sale is aimed at complying with RBI norms which require maximum 15 percent promoter stake. Radha Khanna, Director, MCPL said, “Concluded stake sale solely to deleverage MCPL. Have significantly reduced our borrowing in MCPL in an accelerated manner with stake sale.”

Rana Kapoor, Co-Promoter, YES Bank, said, “Decided to bring down our family ownership in YES Bank to 7.4 percent with sole intention of reducing debt

First Published:Sept 19, 2019 7:19 PM IST