Rana Kapoor
Rana Kapoor | |
|---|---|
| Born | September 9, 1957 New Delhi, India |
| Occupation | Banker |
| Known for | Co-founder and former CEO of Yes Bank |
Rana Kapoor (born 9 September 1957) is an Indian ex-banker who co-founded Yes Bank and served as its managing director and CEO. Yes Bank, a private sector bank headquartered in Mumbai, was launched in 2003. Prior to establishing Yes Bank, Kapoor held various senior positions within the banking sector. He was also the president of ASSOCHAM from July 2013 until 2015, after which Sunil Katoria succeeded him.
In March 2020, Kapoor was taken into custody by India's Enforcement Directorate on charges involving fraud exceeding , remaining incarcerated until he was granted bail in April 2024.
Early life and education
Born in New Delhi on 9 September 1957, Kapoor completed his schooling at Frank Anthony Public School, New Delhi in 1973. He graduated with a bachelor's degree from Shri Ram College of Commerce in 1977 and earned an MBA from Rutgers University, USA, in 1980. Kapoor has been honored with an honorary fellowship from the All India Management Association (AIMA), received the President's Medal from Rutgers University, and was awarded an honorary PhD by GB Pant University of Agriculture & Technology.
Banking career
Kapoor commenced his professional journey at Bank of America (BoA) as a management trainee in 1980. Over 16 years until 1996, he rose to lead the wholesale banking division across Asia, overseeing corporate, government, and financial institution accounts.
In 1996, he joined ANZ Grindlays Investment Bank as general manager and country head, a role he held until 1998.
Yes Bank
In 1995, Kapoor collaborated with his brother-in-law Ashok Kapoor and Harkirat Singh to propose joint ventures with Rabobank for setting up a non-banking financial company (NBFC) and a bank. The NBFC was launched in 1997 with an equity infusion of each from the three partners. They divested their stakes in 2003 for $10 million apiece, providing the initial capital for Yes Bank.
Yes Bank obtained its banking license from the Reserve Bank of India in 2003 with the mission to "Build the Best Quality Bank of the world in India." At inception, Rana Kapoor held a 26% shareholding, Ashok Kapur owned 11%, and Rabobank International had a 20% stake. Ashok Kapur tragically lost his life during the 2008 Mumbai attacks.
Kapoor was recognized as Ernst & Young's Start-up Entrepreneur of the Year in 2005. By January 2017, the appreciation of Yes Bank shares elevated Kapoor to billionaire status.
In September 2018, it was announced that Kapoor would resign as CEO by January 2019. By July 2019, following a steep decline of approximately 78% in Yes Bank’s share price since August 2018, Kapoor’s net worth had diminished by over $1 billion to $377 million.
Legal controversy
On 8 March 2020, the Enforcement Directorate (ED) initiated proceedings against Kapoor under the PMLA and arrested him. His legal representatives contended that he was being selectively targeted. Additionally, the Central Bureau of Investigation (CBI) filed charges against Kapoor and his family members concerning bribery and money laundering linked to Yes Bank operations. Kapoor has denied all allegations.
The ED alleges that Kapoor along with his family and associates received kickbacks valued at through companies controlled by his family members as inducements for approving substantial loans via Yes Bank. He is accused of accepting bribes to ignore non-performing assets among key corporate borrowers.
Further charges relate to Kapoor’s involvement in the DHFL fraud case involving more than $3 billion. It is claimed he accepted over $100 million in illicit payments stemming from fraudulent loans granted by Yes Bank to DHFL; these funds were allegedly used to acquire expensive real estate properties in Delhi and Mumbai registered under family members’ names.
In May 2020, ED submitted a charge sheet naming seven individuals and five companies:
- Individuals: Rana Kapoor; wife Bindu Kapoor; daughters Roshni, Radha, Rakhee Kapoor; DHFL promoters Dheeraj Wadhawan and Pankaj Wadhawan.
- Companies: Morgan Credit Pvt. Ltd and Yes Capital Pvt. Ltd (promoter entities owned by Kapoor’s daughters); RAB Enterprises (investment company owned by Kapoor’s wife); Dewan Housing Finance Limited; RKW Developers (owned by Dheeraj Wadhawan).
Kapoor remains incarcerated at Taloja Jail in Maharashtra. A bail application citing health concerns and COVID-19 risks was denied by a Mumbai court in April 2020.
On 4 August 2023, the Supreme Court refused Kapoor’s bail request related to money laundering charges, emphasizing the severe consequences of this case on the financial sector.
Personal life
Kapoor lives in Mumbai and is married to Bindu Kapoor. Together, they have three daughters: Radha Kapoor Khanna, Rakhee Kapoor Tandon, and Roshini Kapoor. In the 2020 money laundering investigation, the Central Bureau of Investigation named his wife and all three daughters as co-accused.
Ashok Kapur, who co-established Yes Bank alongside Kapoor, is married to Kapoor's wife's sister.
Awards and achievements
- AAAI Award recognizing innovative banking and financial solutions in Media and Communications (2018)
- Asian Banker CEO Leadership Achievement Award for India spanning 2011 to 2013
- Entrepreneurial Banker of the Decade awarded by Bombay Management Association for 2001–2010
- Best CEO-BFSI Hall of Fame recipient at the 2014 IMM-JJ Awards for Excellence
- SKOCH Award honoring contributions toward Public Policies for Infrastructure Growth and National Development (2015)
- London Business School accolade for Outstanding Contribution to Entrepreneurship & Innovation