Kapoor owns just over 10 per cent of Yes Bank
shares, including through his two holding companies, Yes Capital (India) Pvt and Morgan Credits. Last year, he pledged never to sell his shares, vowing to pass them on to his daughters.
“Diamonds are Forever: My Promoter shares of @YESBANK are invaluable to me,” Kapoor tweeted in September, referring to his shares as the bank’s founder. “I will eventually bequeath my @YESBANK promoter shares to my 3 daughters and subsequently to their children, with a request in my Will stating not to sell a single share.”
Kapoor declined to comment on Thursday on the effect of the share price drop on his wealth.
The value of those assets could be eroded further if new analyst forecasts for Yes Bank come true. Describing the latest results as “far worse than we had anticipated,” Jefferies analysts led by Nilanjan Karfa cut their price target for the bank to Rs 50 from Rs 80. That would imply a further drop of more than 40 per cent from current levels.
Since Gill took over in January the era of rapid growth in Yes Bank’s loan book has ended, and the bank is faced with the need to raise new capital at a time when the share price is under pressure. Under Kapoor, total assets of the bank grew at a compound annual growth rate of 34 per cent in the 10 years through March 2018, outpacing its peers among Indian banks.