Yes Bank accused Kotak Mahindra Bank of negative news coverage
Private-sector lender Yes Bank alleged that some of the negative media coverage it has received in the recent past could be because of the rival bank Kotak Mahindra Bank, all is described in a letter written to the Business Standard. Yes Bank also sent a copy to both BSE and NSE. Yes Bank’s general counsel, Sanjay Nambiar cited “conflict of interest” as the reason behind news coverage that he described as predatory, vindictive, and ruthless. Yes Bank in the letter said that Kotak Mahindra Bank is doing all these coverages on the instructions of competitors and market manipulators.
The conflict of interest issue is related to Kotak family which also runs Kotak of Mahindra Bank, a rival to the Yes Bank. In response, Kotak Mahindra Bank, which is owned by Asia’s richest banker Uday Kotak, pointed to the independent operational structure at the daily to counter accusations of conflict of interest.
Yes Bank and Kotak Mahindra Bank started their operations in the same years of 2003-2004. Kotak Mahindra Bank has evolved from an investment bank to a full-fledged lender with interests spread across private equity, life insurance, and asset reconstruction whereas Yes Bank has concentrated on corporate advances while building a commensurate liability profile. The shares of Yes Bank have been in a danger after the Reserve Bank of India (RBI) retrenched Rana Kapoor’s tenure. The stock of Yes Bank has fallen more than 50% in the last three months.
Kotak Mahindra Bank and its subsidiaries have 2,000 shares in Business Standard Ltd, which is less than 0.0013% of its capital. Rohit Rao, chief communication officer, Kotak Mahindra Group, said that promoter Uday Kotak does not have any stake in Business Standard and also clarifies that there is no presence of the Kotak family on the board of Business Standard but Ownership part of it is with the Kotak family. The company is independently run under the most respected figure in journalism, chairman TN Ninan.