Yes Bank files complaint with Mumbai Police, Cyber Cell as rumours, fake news hamper stock price

Mumbai: Yes Bank has lodged a complaint with Mumbai Police and Cyber Cell against the dissemination of fake news and spread of rumours about the bank's financial health on social media platforms.

The private lender's stock has lost about 80 per cent this financial year but its management says the decline does not reflect the bank's fundamentals.

Yes Bank has requested the authorities to form a multi-disciplinary team of experts for detecting the origin of the fake news and assess the short-sell positions, held either directly or indirectly by such accused persons.

"Over the past few days, some miscreants have been spreading false information and malicious rumours about Yes Bank on WhatsApp and other social media platforms to create panic and fear in the mind of its depositors," it said in a statement.

"The messages attempt to portray the bank in poor light and are intended to tarnish the image of the bank in the eyes of its depositors, stakeholders and the general public." The statement said the bank remains committed to protect the interest of all its valued stakeholders and promises to take strong steps against the fear and panic mongers. "The bank appeals to its trusted patrons to be cautious of false information circulating against it and assures that its financial position continues to be absolutely safe and sound." On October 1, the bank's scrip dipped to historic lows and lost 22 per cent of its value to close at a low of Rs 32, down from a high of Rs 404 in August 2018 when the Reserve Bank of India asked main promoter Rana Kapoor to leave the bank.

The next day, Yes Bank's Senior Group President and Chief Financial Officer Rajat Monga has quit from his positions.

"Recent market rumours and reports appear to have generated a lot of speculation around Yes Bank Ltd. We strongly refute them as being speculative, unsubstantiated and irresponsible," said Managing Director and CEO Ravneet Gill.

Meanwhile, reports say that global private equity majors TPG, Carlyle Group and Farallon Capital are seeking to buy large strategic stakes in Yes Bank whose business fundamentals present a compelling value proposition at current market price.

Yes Bank has been looking to raise capital to help fund growth and improve asset quality. The decline of more than 80 per cent in the stock's value in FY20 could mean equity dilution of 30 per cent to 35 per cent, Gill had said last week.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in