Rana Kapoor: the man responsible for Yes Bank messTeam IndiaYahoo Finance9 March 2020, 12:27 PM UTCHere’s all you need to know about the beginnings and the journey of Rana Kapoor, the man behind the Yes Bank fiasco that has left customers, and the markets, distressed.Source: Wikipedia, News18Rana Kapoor is the founder, and former managing director and CEO of Yes Bank, an Indian private sector bank, with its registered office in Mumbai.Kapoor was born and was brought up in New Delhi. He completed his schooling from Frank Anthony Public School, New Delhi in 1973 and went on to earn BA degree from Shri Ram College of Commerce (1977).He then obtained an MBA degree from Rutgers University in New Jersey, US (1980). Kapoor received an honorary fellowship from All India Management Association (AIMA),President's Medal from Rutgers University, an honorary PhD from GB Pant University of Agriculture & Technology.Scroll to continue with contentAdIn 1980, Kapoor joined Bank of America (BoA) as a management trainee. In 1990 he was presented the Eagle Pin by the chairman. He eventually went on to head the wholesale banking business which included several assignments in Asian countries.Kapoor worked at BoA for about 16 years, till 1996, managing corporate, government and financial institution clients. He was awarded the Chief Executive Officer's award by the Chairman for his performance.In 1996, Kapoor joined ANZ Grindlays Investment Bank (ANZIB) as general manager & country head. He worked there for two years, until 1998.In February 1995, a team from Rabobank arrived in India, scouting for opportunities. Kapoor, his brother-in-law Ashok Kapur, and Harkirat Singh made a proposal to the visiting team for two joint ventures: a non-banking financial company (NBFC) and a bank. During the next year, Kapoor held meetings with the Rabobank executives in India, Singapore and the Netherlands.The NBFC was set up in 1997, with the three Indian partners chipping in with an equity capital of ₹9 crore each. In 2003, the three sold their stake for $10 million each, generating the seed fund for the bank.In 2003, the team was granted a banking licence by the Reserve Bank of India to set up Yes Bank. They established Yes Bank with the vision of 'Building the Best Quality Bank of the World in India' by 2015.Rana Kapoor held 26% stake in Yes Bank, Ashok Kapur held 11%, and Rabobank International held 20% stake. Ashok Kapur died in 2008 in the Mumbai 26/11 attacks.In 2005, Kapoor was named Ernst & Young's Start-up Entrepreneur of the Year. In January 2017, Bloomberg noted that with the rising share price of Yes Bank, Kapoor had become a billionaire.In September 2018, Yes Bank announced that they had ordered Kapoor to step down from his CEO position in January 2019. In July 2019, it was reported that with a 78% drop in the Yes Bank share price since August 2018, Kapoor's net worth had fallen by over a billion to $377 million.Kapoor resides in Mumbai and is married to Bindu Kapoor. They have three daughters: Radha, Rakhee, Roshini.On March 8, 2020, the Enforcement Directorate registered a money laundering case against him and he was arrested.A day after CBI registered an FIR against him under charges of alleged criminal conspiracy and corruption, the investigating agency carried out searches at seven locations in connection with the alleged Yes Bank scam case.The Central Bureau of Investigation has alleged that Kapoor received kickbacks through a Rs 600-crore loan from an NBFC, which is an associate company of Dewan Housing Finance Limited, to DoIT Urban Ventures (India) Private Ltd, a company owned by Kapoor’s family, at a time when Yes Bank had loan exposure of Rs 3,700 crore to DHFL. Rana Kapoor was the MD and CEO of Yes Bank till January 2019.In its FIR, the CBI has named five companies, seven individuals, including Kapoor's wife and three daughters, and unidentified people. Besides Rana Kapoor, the agency has booked his wife Bindu, daughters Roshini, Raakhe and Radha. Kapil Wadhawan, promoter of Dewan Housing Finance Corporation Limited and Dheeraj Rajesh Kumar Wadhawan, Director of RKW Developers Private Limited, a company linked to DHFL have also been named as accused.Rana Kapoor was said to be a banker ‘who would never refuse a loan’. Under Kapoor, Yes Bank was the go-to institution for firms seeking loans. Yes Bank would lend money to even those corporates who had been refused by other lenders. He also used to pump in crores into publicity and said: ‘If you don’t invest big, you don’t grow big'. A Page 3 regular, Rana was also known to host lavish parties at his South Mumbai apartment on the 27th floor of Samudra Mahal. He is said to be a tenant of Congress politician Jyotiraditya Scindia. In recent times, however, the parties had come to a halt.