Reliance MF sends notice to YES Bank’s Rana Kapoor on shortfall in collateral

NEW DELHI: Reliance Mutual Fund sent a notice to YES Bank's promoter Rana Kapoor for not topping up the collateral shortfall, ETNow reported quoting sources.

The mutual fund has estimated a mandatory top up of Rs 500 crore from the YES Bank promoter.

“Reliance Mutual Fund on September 9 served an event of default notice to YES Bank’s Rana Kapoor,” ETNow said.

However, shares of the private sector lender were trading over 8 per cent higher in morning trade after the private lender denied a Reuters report that suggested the bank was close to securing a deal to sell a minority stake to a global technology company.

In a reply to BSE, the lender said the news report was speculative.

Earlier, there were also speculations that YES Bank founder and former chief executive Rana Kapoor may sell his 9.64 per cent stake in the bank as he seeks to cut personal debt and facilitate a fresh round of fund raising by the bank to improve its capital position.

Reports suggested that Kapoor was in talks with Paytm founder Vijay Shekhar Sharma which may be at a personal level, and which Kapoor neither confirmed nor denied.