Heena Sharma Blog

  The ED on Monday conducted raids on at least ten premises of a Mumbai-based realty group in connection with its money laundering probe in the Yes Bank alleged bank fraud case, official sources said. They said premises of Omkar Realtors and Developers, that includes 7 residential and 3 official in Mumbai, were searched by the central probe agency.   Emails sent by PTI to the realty group did not elicit a response. The action is being carried out under the Prevention of Money Laundering Act (PMLA) and the raids are aimed to gather more evidence, they said. The Omkar Group is promoted by its chairman Kamal Kishore Gupta and Managing Director Babulal Varma, they said. The group is alleged to have misused various permissions given under the SRA (slum rehabilitation authority) schemes and is alleged to have "diverted" around Rs 450 crore taken by way of loan from Yes bank, ED sources said. Read More

An offence has been registered against DHFL promoters Kapil and Dheeraj Wadhawan and 21 others, including their family members, for travelling to a hill station in violation of prohibitory orders during the coronavirus lockdown, officials told PTI on Friday. The offence under relevant sections of the IPC and the Disaster Management Act, one of them related to disobedience of lawful order, was filed at the Mahabaleshwar Police Station in the Satara district of Maharashtra. Wadhawan family members, along with others, were detained by civic officials on Thursday from their Diwan Villa farm house in Mahabaleshwar, a popular hill station located more than 300 km from Mumbai, an official said. Read More

Shares of YES Bank slipped 20 per cent to Rs 43.15 on the BSE on Friday, extending its Thursday’s 13 per cent fall, after new equity shares allotted to investors through preferential issue were permitted to trade on the exchanges. With the past two days’ decline, the market price of YES Bank has more than halved from the level of Rs 87.95 touched on Wednesday, March 18, in the intra-day trade. It had hit an all-time low of Rs 5.55 on March 6, on the BSE. “A 1,000 million equity shares of Rs 2 each issued at a premium of Rs 8 issued to non-promoters on a preferential basis pursuant to YES Bank Reconstruction Scheme, 2020, approved by Ministry of Finance, are listed and permitted to trade on the Exchange with effect from Thursday, March 19, 2020,” BSE said in a notice dated March 18, 2020. YES Bank had raised Rs 10,000 crore pursuant to allotment of shares to State Bank of India (SBI) and other investors including HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank under the Reco

The Enforcement Directorate (ED) has issued summons to a clutch of borrowers of YES Bank , including Essel group Chairman Subhash Chandra, Jet Airways founder Naresh Goyal, Cox & Kings promoter Peter Kerkar, Dewan Housing Finance promoter Kapil Wadhawan, and a few more in connection with the money laundering probe against YES Bank co-founder Rana Kapoor. Besides, the federal agency has issued fresh summons to Reliance Group Chairman Anil Ambani asking him to appear on Thursday. Ambani was summoned on Monday for questioning related to the stressed loans that were sanctioned to ADAG group during Kapoor’s tenure. But he has filed adjournment application with the ED seeking more time. An ED official said it was examining all the big borrowers of YES Bank and that is why each of the borrower had been asked to join the probe this week. Read More

Bindu Rana Kapoor was a director in at least 42 companies, many of them investment companies, data accessed shows, some of whom have been named in the FIR registered by the CBI for receiving kickbacks to the tune of Rs 600 crore from DHFL as a builder loan. Former Yes Bank founder, Rana Kapoor's wife, Bindu was a director in the main investment and holding companies associated with Rana Kapoor, including Morgan Credits, Yes Capital (India), DoIt umbrella companies, RAB among others. The majority of these companies are realty nomenclatured like Bliss, Imagine, Mantra where the suspicion is that the money was siphoned off into realty ventures. In Delhi alone, Rana Kapoor had three bungalows. Some of these companies are named in the CBI FIR in which DHFL is also named. Read More

After much delay, YES Bank is scheduled to announce its results for the third quarter ended December 2019 (Q3FY20) on Saturday, March 14. The results assume significance in the backdrop of recent developments that saw the Reserve Bank of India (RBI) supersede the board of directors of YES Bank and appointed Prashant Kumar as the administrator. The apex bank also put under moratorium all deposits with YES Bank till the first week of April. So, what do analysts expect the bank to unveil on Saturday? “ Quality of book / accounts; actual deposit base; details on the amount of money needed to meet the capital adequacy norms and get new investors on board; and an honest admission of the troubled assets of the bank are the four key things investors should monitor,” says Siddharth Purohit, an analyst tracking the sector at SMC Global. The moratorium on withdrawal of deposits till April and the proposal to write down the additional capital tier-1 (AT-1) bonds, analysts say, has not

After YES Ban k was placed under moratorium, digital payments were impacted as PhonePe , which depends on the cash-strapped lender for its transactions, could not operate. It can be noted that the bank's own net banking facilities have not been operational since last evening. Other fintech operators who rely on YES Bank to settle their transactions are also down. We sincerely regret the long outage. Our partner bank (YES Bank) was placed under moratorium by RBI. Entire team's been working all night to get services back up asap (as soon as possible), the app's chief executive Sameer Nigam tweeted early in the morning. PhonePe, one of the country's largest digital payment platforms, is dependent on YES Bank to process its transactions. Read More

Finance Minister Nirmala Sitharama assured the depositor that their corpus was safe in YES Bank and the Reserve Bank of India would manage the situation well. She said that the YES Bank board has been bypassed and former State Bank of India chief financial officer Prashant Kumar has been appointed administrator of YES Bank. RBI is finding a solution to this, and no depositor will lose any money, she said. She added that the people can withdraw money to deal with tough situations and the cash crunch is being dealt with. Read More

Defending the timing of YES Bank 's moratorium, Reserve Bank of India (RBI) governor Shaktikanta Das on Friday assured swift resolution to the issues concerning the beleaguered lender. “ The resolution will be done very swiftly, it will be done very fast. 30 days which we have given is the outer limit. You will see a very swift action from RBI,” told reporters after ASSOCHAM's 15th annual banking summit. "The decision is taken at a larger level, not at individual entity level, the move is aimed at ensuring safety of financial system," he added On the timing of the action on YES Bank, Das said there is always debate over RBI acting prematurely or taking too long to act. “ A market-led and bank-led resolution of the problem is always preferable. You have to give time to the bank management to take step and efforts. And the bank did take efforts. When we found that we cannot wait and should not wait any longer, we decided to intervene," Das added. Read

JP Morgan cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets. Macquarie Capital Securities also said if State Bank of India (SBI) decided to buy stake in the bank, they should buy it at Rs 1 per share as the net worth is hugely impaired. “ We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said. Explaining its reasons for the meagre price for YES Bank shares, Macquarie said the bank has a net worth of Rs 25,000 crore. However, its BB and below rated loan portfolio is approximately Rs 30,000 crore and the BBB belo