Rana Kapoor, the former MD and CEO of crisis-laden Yes Bank, was sent to three-day Enforcement Directorate (ED) custody by a sessions court in Mumbai on Sunday. Kapoor was arrested under money laundering charges in Mumbai late on Saturday.
Kapoor was questioned over a Rs 600-crore loan from a non-banking financial company (NBFC), which is an associate company of Dewan Housing Finance Limited (DHFL), to DoIT Urban Ventures (India) Private Ltd, a company owned by Kapoor’s family, at a time when Yes Bank had loan exposure of over Rs 3,000 crore to DHFL. Rana Kapoor was the MD and CEO of Yes Bank till January 2019.
Who is Rana Kapoor?
Rana Kapoor, 62, is an Indian banker and co-founder of private lender Yes Bank. He completed his Bachelors degree from Delhi University’s SRCC college in 1977 and went to the US to complete his MBA from Rutgers University.
A former Bank of America executive, Kapoor co-founded finance firm Rabo India Finance in a joint venture with the Netherland’s Rabobank in 1998 but sold his stake five years later. Along with his brother-in-law Ashok Kapur and Harkirat Singh, Kapoor bagged what was a rare banking license from the RBI to set up Yes Bank in 2004.
In 2018, Forbes valued his net worth at USD 1.3 billion, making him the second richest self-made banker after Uday Kotak by virtue of his 11 per cent stake in Yes Bank. However, his net worth dropped to USD 363 million from USD 1.3 billion in 2019, owing to a 78 per cent drop in the shares of Yes Bank. According to a Bloomberg Billionaires Index, the private lender’s capital buffers had weakened and bad loan ratio widened.
In September 2018, Yes Bank announced its separation from Kapoor, asking him to step down from his CEO position by January 2019.
In a column written for The Indian Express in 2016, Kapoor had hailed the NDA government’s demonetisation exercise as a “bold step”, saying that after short-term disruptions, the benefits of it will be immense.
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