New Delhi: Yes Bank Ltd, India’s fifth largest private-sector lender by assets, said on Wednesday it was not involved with the fund management of its promoter firms Yes Capital (India) Pvt. Ltd and Morgan Credits Pvt Ltd. The statement was in response to an Economic Times report on Wednesday which said these promoter firms routed debt money as equity into private finance companies.

Rana Kapoor’s companies—Yes Capital and Morgan Credits—paid 200 crore each to Reliance Mutual Fund and Franklin Templeton Mutual Fund, the Press Trust of India quoted sources as saying on Monday, adding this was a prepayment of the due amount. With this payment, the overall outstanding of the promoter group’s borrowing has come down to 1,400 crore, they had said.

On Wednesday, the Press of India reported that the sparring promoters of Yes Bank are inching towards a truce, but there was no clarity on the exact status of the talks with one camp claiming it’s at an advanced stage and the other being not on the same page. The bank’s board, at its 13 December meeting, will recommend names for new chairman to the Reserve Bank of India as well as consider appointment of independent directors, PTI said in another report.

Yes Bank shares tumbled to their 52-week lows on Wednesday after Moody’s Investors Service downgraded the company’s ratings to non-investment grade and changed outlook to negative from stable. Yes Bank shares fell 11.71% to 161.70 apiece on the BSE even as the benchmark Sensex gained 0.57% to end the day at 35,716.95 points.

Moody’s rating action considers the resignation of members of the bank’s board—Ashok Chawla and R. Chandrashekhar—and the Reserve Bank of India’s (RBI’s) September directive to restrict the term of the bank’s founder and managing director Rana Kapoor, Moody’s said. These have raised concerns over corporate governance, the rating company said.

Mint had reported on Monday that RBI is inspecting Yes Bank’s exposure to Infrastructure Leasing and Housing Finance Ltd, Dewan Housing Finance Corp. Ltd (DHFL), Indiabulls Group and Sudhir Valia-promoted entities. The inspection is to ascertain whether there is any link between the bank and non-banking finance companies (NBFCs) in the backdrop of the IL&FS crisis.