How Yes Bank's Rana Kapoor made Rs.20 billion from loans worth Rs.60 billion to Indiabulls

The Yes Bank founder easily extended loans to debt-laden Indiabulls Group. But what was in it for him?

Faisal Magray

“Diamonds are forever,” tweeted a confident Rana Kapoor after he was ousted from the once shining private bank, an institution that he founded. These diamonds were Yes Bank’s shares, which he said he would eventually bequeath to his daughters and they’d stay in the family forever. Clearly, he spoke too soon. From over 15% stake that he held a decade ago, along with his promoter firms Yes Capital and Morgan Credits, today he owns a meagre 900 shares. That’s almost negligible, not even worth Rs. 60,000 at its current market price of Rs. 64. The final stake sale on November 12-13 came just days before RBI found that the bank had under-reported bad loans worth Rs. 32.7 billion. As new skeletons continue to fall out of the closet,there are still several questions about what went down at the bank. Outlook Business wrote an in-depth report about how he ran the bank, and what led to his descent. But there’s another story that has started coming to light, after a public interest litigation (PIL) filed against Indiabulls Housing Finance (IBHFL).