The letter had alleged that the bank was using the firm owned by Kapoor’s daughters as “a conduit to undue benefits for credit exposure”, and that the family office conducted “parallel lending/investment business”. YES Bank replied saying it had no dealing with the firm. These allegations come at a time when Kapoor’s tenure has been cut short by the Reserve Bank of India and all eyes are trained on finding Kapoor’s successor.

Kapoor’s three daughters — Rakhee Kapoor Tandon, Radha Kapoor Khanna, and Roshini Kapoor — are also directors of two holding firms of YES Bank, Yes Capital (India) and Morgan Credits, which own 3.28 per cent and 3.05 per cent stake, respectively. The letter had also accused the bank of “influencing market participants to artificially inflate/support the bank’s share price” before key events like capital raising and window dressing corporate accounts to conceal actual non-performing assets (NPA). The bank said it was compliant with disclosure requirements, especially with respect to unpublished price-sensitive information. The bank attributed the high NPA figures to the trend of rising NPAs across the industry.