Editorial: Yes or no

Days after the ED grilled Yes Bank co-founder Rana Kapoor, the CBI carried out searches at seven locations on Monday in connection with the scam pertaining to the Rs 600 crore alleged bribe to his family by DHFL. Teams of CBI officers are carried operations at the residence and official premises of the accused in Mumbai.

The agency has alleged that Kapoor, 62, entered into a criminal conspiracy with Kapil Wadhawan, DHFL promoter, for extending financial assistance to DHFL through Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them, they said.

According to the CBI FIR, the scam started taking shape between April and June, 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of the scam-hit Dewan Housing Finance Corporation Ltd (DHFL). In return, Wadhawan allegedly ‘paid kickback of Rs 600 crore’ to Kapoor and family members in the form of loan to DoIT Urban Ventures (India) Pvt Ltd, they said.

Meanwhile, shares of Yes Bank on Monday zoomed over 30 per cent after State Bank of India (SBI) said it will pick up 49 per cent stake in the cash-strapped lender for Rs 2,450 crore.

SBI on Saturday announced it will pick up a 49 per cent stake in Yes Bank for Rs 2,450 crore and clarified that all the deposits and liabilities of the reconstructed bank will continue in the ”same manner”.

‘Yes Bank has 255-crore shares of Rs 2 per share. SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank,’ the State Bank said in a statement.

SBI Chairman Rajnish Kumar had earlier said that it had set a maximum investment limit of Rs 10,000 crore for Yes Bank reconstruction process. Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise USD 2 billion initially during this fiscal, which was then pruned to USD 1.2 billion as it could not rope in any investor.

Allegations about the bank and its promoters are shocking and the guilty must be punished after a thorough investigation, and the public’s trust on banks should be safeguarded.

NT Bureau