Yes Bank Managing Director and Chief Executive Officer Prashant Kumar on Friday said that the lender will opt for the legal route to maximise recoveries from Dish TV India. Kumar was speaking at the company's earnings concall after the declaration of quarterly results for FY22.
The comments come in the backdrop of Yes Bank finalizing the paperwork to sue satellite television operator Dish TV India Ltd over its refusal to hold a special shareholders meeting, according to a Mint report.
Meanwhile, Dish TV on Wednesday said it has rejected the EGM requisition notice by Yes Bank to reconstitute the board of the direct-to-home player on the technical ground as it requires certain prior approvals.
Dish TV board was of the opinion that Yes Bank Ltd's (YBL) proposal requires certain prior steps to be them under the applicable provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
YBL, which holds 47.19 crore equity shares of the company representing 25.63 per cent of Dish TV, has sought to remove Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarwal and Ashok Kurien from the board of Dish TV besides Jawahar Goel.
YBL has also sent the name of seven people -- two Non-Executive Directors and five Independent Directors - to be nominated on the board of the company.
Earlier YBL, which is opposing ₹1,000 crore right issues by the Subhash Chandra led Essel group firm, has sent notice to Dish TV, for reconstitution of the board in the AGM of the company, which was scheduled to be held on September 27, 2021.
However, Dish TV got the meeting postponed the AGM saying that it needs time for regulatory permissions. This was also accepted by the Registrar of Companies, which granted Dish TV an extension of two months to call for AGM from the due date by which it ought to have been held.
After this, on September 23, Yes Bank had asked Dish TV to call for an Extraordinary General Meeting of the Essel group firm.
YBL had alleged that the extension is based on "unfounded reasons" and Dish TV is engaging in "dilatory tactics" in placing the resolutions.
The lender has reported a profit after tax of ₹225 crore for the quarter ended September, an increase of 74.3 per cent over the year-ago period, mainly on the back of lower provisioning requirements.
The bank's profit after tax stood at ₹129 crore in the corresponding quarter of previous fiscal.
Yes Bank's Managing Director and CEO Prashant Kumar attributed the rise in profit to better business growth and lower provisioning requirements.
The bank's Net Interest Income (NII) declined 23.4 per cent to ₹1,512 crore in Q2 FY2022 compared to ₹1,973 crore in the year-ago period.
The net interest margins dipped to 2.2 per cent from 3.1 per cent in the same quarter of the previous fiscal.
Gross Non-Performing Assets (NPAs) ratio improved to 15 per cent in the latest September quarter from 16.90 per cent in the year-ago period. Net NPAs stood at 5.5 per cent compared to 4.7 per cent in the same period a year ago.
Fresh slippages during the quarter under review stood at ₹1,783 crore, out of which corporate slippages were to the tune of ₹750 crore.
During the quarter, cash recoveries were at ₹987 crore and upgrades at ₹969 crore. For the full year, the bank has kept a target of ₹5,000 crore of recoveries and upgrades.
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