Yes Bank repays entire Rs 50,000 crore Special Liquidity Facility to RBI; No merger plans with SBI
Private lender Yes Bank on September 10, 2020, said it has fully repaid Rs 50,000 crore towards the Special Liquidity Facility (SLF) extended by RBI, well before the due date.
The chairman of the bank, Sunil Mehta, confirmed the development at the 16th Annual General Meeting of the shareholders held virtually on Thursday.
Mr Sunil Mehta, Chairman, YES BANK said, "The unwavering confidence and trust received from all our stakeholders, particularly the shareholders and customers in the newly constituted Board of Directors & management is truly gratifying. YES BANK is steering its way forward by learning from past challenges, expeditiously addressing key issues, and becoming stronger, while continuing to focus on supporting our customers and all stakeholders. The Bank successfully raised equity funding of Rs 15,000 crore through FPO, within four months of the new Board taking charge. Consequently, the Bank's Pro-forma Common Equity Tier (CET) 1 ratio has doubled to 13.4 per cent from 6.6per cent at the end of June 2020.
He added, "The Bank has fully repaid Rs. 50,000 crore towards the Special Liquidity Facility (SLF) extended by RBI, well before the due date. It is noteworthy that Moody's upgraded the Bank's rating to B3 with outlook stable. The new Board and the Management remain firm in its resolve to build an institution which has highest standards of governance, strong risk processes, financially strong, technologically powered to deliver the best value to our customers."
Besides, the General Body of the shareholders of YES BANK, at the 16th AGM approved 15 resolutions with an overwhelming majority. Things approved by the shareholders include
1. Adoption of standalone and consolidated financial statements of the Bank for the year ended March 31, 2020 (Ordinary Resolution)
2. To appoint and fix the remuneration of Statutory Auditors ( Ordinary Resolution)
3. To take note of the appointment of Mr. Sunil Mehta as a Non-Executive Director and Chairman of the Bank and to approve payment of remuneration (Ordinary Resolution)
4. To take note of the appointment of Mr. Mahesh Krishnamurti as a Non- Executive Director (Ordinary Resolution)
5. To take note of the appointment of Mr. Atul Bheda as a Non-Executive Director (Ordinary Resolution)
6. To take note of the appointment of Mr. Rama Subramaniam Gandhi as an Additional Director appointed by Reserve Bank of India (Ordinary Resolution)
7. To take note of the appointment of Mr. Ananth Narayan Gopalakrishnan as an Additional Director appointed by Reserve Bank of India (Ordinary Resolution)
8. To take note of the appointment of Mr. Swaminathan Janakiraman as a Nominee Director (Ordinary Resolution)
9. To take note of the appointment of Mr. Partha Pratim Sengupta as a Nominee Director and subsequent resignation w.e.f. July 24, 2020 (Ordinary Resolution)
10. To take note of the appointment of Mr. V. S. Radhakrishnan as a Nominee Director (Ordinary Resolution)
11. To take note of the appointment of Mr. Prashant Kumar as Managing Director & Chief Executive Officer of the Bank and to approve payment of remuneration (Ordinary Resolution)
12. To take note of the payment of remuneration to Mr. Prashant Kumar as Administrator of the Bank appointed by the Reserve Bank of India (Ordinary Resolution)
13. To ratify the extension of the use of Bank provided Accommodation and Car facility to Mr. Ravneet Singh Gill, Ex Managing Director & Chief Executive Officer (Ordinary Resolution)
14. To approve Alteration of the Articles of Association of the Bank (Special Resolution)
15. To approve amendments to Employee Stock Options Scheme - 'YBL ESOS - 2018' (Special Resolution)
Addressing investor queries on whether the bank was going to be merged with State Bank of India (SBI) eventually, Mehta said that no such plans were afoot. He added that neither the bank nor any authority had discussed such a proposal as far as he knew.