Shares of Yes Bank have seen a sharp correction in price this week. The stock has lost 78 percent in value between August and Thursday, causing a massive drop of $1 billion in founder Rana Kapoor's networth.
On Wednesday the private bank reported a 91 percent fall in its net profit for the June quarter when compared to the same period a year ago on account of widening bad loan ratio. Yes Bank share price lost over 15 percent in Thursday's trading session following the results announcement that also showed a three-fold increase in provisions and weakening in asset quality.
The Bloomberg Billionaires Index on Thursday showed that Kapoor's networth fell to $377 million from $1.4 billion on 20 August 2018. In rupee terms, the $1 billion he lost could be close to Rs 7,000 crore.
Kapoor started Yes Bank in 2004 and over a period of 15 years, he built it to become the country's fourth largest private lender. He was forced out of the management in 2018 by the Reserve Bank of India over the controversy of bad-debt accounting.
He owns a little over 10 percent stake in the bank through his two holding companies, Yes Capital (India) Pvt and Morgan Credits Pvt. He has previously stated that he will hold on to the shares and eventually hand it over to his daughters "with a request in my Will stating not to sell a single share," in a tweet.
The share price is under pressure as brokerages continue to cut price targets on the stock. This could mean that Rana Kapoor is likely to lose more.