Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Before the Reserve Bank of India put in a limit of ₹50,o00 on withdrawals by depositors in Yes Bank, the shares of the private bank zoomed nearly 27% on March 5 on source-based reports that the government has asked the State Bank of India (SBI) to lead a consortium to buy stake in Yes Bank. 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed flourish-chart" data-src="visualisation/1515287"></div>
]]></cdata></div>

 However, the midnight statement from SBI, the country's largest bank, was far more non-committal than what investors of Yes Bank would hope for. SBI and the Life Insurance Corporation of India (LIC) will acquire shares at ₹2 per share. The two state-run companies will acquire 49% stake for a total of ₹490 crore, the Economic Times reported citing sources. However, SBI seems to be approaching Yes Bank with more than adequate caution. "No such negotiations/events took place. However, the matter in regard to Yes Bank was discussed at the meeting of the Central Board of the Bank on March 5 and an in-principle approval has been given by the Board to explore investment opportunity in the Bank," the <a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/477eac4e-fa44-4a91-82e8-7394795624d4.pdf" data-type="tilCustomLink" target="_blank">SBI response to the exchanges said</a>. 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed flourish-chart" data-src="visualisation/1516180"></div>
]]></cdata></div>

 In essence, SBI is saying that it will explore the possibility of investing in Yes Bank but it is no way a certainty. This is yet another example of how investors, particularly the small investors, have been trapped buying shares of Yes Bank based on rumours. Between June and September 2019, the public stake in Yes Bank has more than doubled as people bought the bank's shares hoping to make a quick buck while the big investors including institutions offloaded their stake in the bank that was slowly sinking into an abyss. Global brokerage JP Morgan reportedly said that the bailout will come at a large cut for equity holders. "We believe forced bailout investors will likely want the bank to be acquired at near zero value to account for risks associated with the stress book and likely loss of deposits (Q3 financials have still not been disclosed)," it said, according to an IANS report. Aside from this, people who have money deposited in Yes Bank accounts found themselves stuck as some ATMS, and even net banking including the mobile app did not function soon after the RBI announced the moratorium. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/yes-bank-mobile-and-net-banking-down-after-rbi-limits-withdrawals-to-50000/articleshow/74499754.cms" data-type="tilCustomLink" target="_blank">Yes Bank mobile and net banking down after RBI limits withdrawals to ₹50,000</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-mobile-and-net-banking-down-after-rbi-limits-withdrawals-to-50000/articleshow/74499754.cms" data-type="tilCustomLink" target="_blank">Yes Bank under CEO Ravneet Gill⁠— eight months of wild mood swings</a>

SBI statement on proposed Yes Bank bailout is far from reassuring

<ul><li>Yes Bank has been looking for an investor and Hong Kong-based SPGP Holdings has reportedly has made a $1.2 billion binding offer.</li><li>Earlier this year, SPGP Holdings’ bid for Reid &amp; Taylor was rejected because it failed to deposit the earnest money, a paltry sum of ₹2 crore.</li><li>Yes Bank’s share price soared nearly 30% after the announcement but investors must remember the proof of the pudding is in the eating.</li></ul>Cash-strapped Yes Bank has been looking for an investor and Hong Kong-based SPGP Holdings has reportedly has made a ₹8,500 crore ($1.2 billion) binding offer, according to a television channel CNBC-TV18. Investors who were anxious about the bank’s survival heaved a sigh of relief and bet big money, taking the stock of Yes Bank higher by as much as 30% in afternoon trade on October 31. Earlier in August, Yes Bank had raised ₹1,930.46 crore through qualified institutional placement to fund its business expansion. The share price has more than doubled from its <a href="https://economictimes.indiatimes.com/markets/stocks/news/whats-next-for-yes-bank-after-shares-double-from-decade-low/articleshow/71823268.cms">ten year low </a>it hit this month in anticipation of such fundraising. However, investors must remember the same SPGP Holdings bid for Reid &amp; Taylor earlier this year. It <a href="https://www.thehindubusinessline.com/companies/nclt-mumbai-puts-rtils-liquidation-plans-on-hold/article25892000.ece">reportedly</a> had a corpus of $250 million but the bid was eventually rejected by the court because SPGP Holdings failed to deposit the earnest money, a paltry sum of ₹ 2 crore. The two-judge bench at India’s bankruptcy court slammed SPGP Holdings as they rejected its bid and handed it over to another Gujarat-based asset reconstruction firm. “You painted a rosy picture and misrepresented facts before us. This is just not correct. We waited for one week and now you say you cannot pay. This is contempt of court. You may withdraw your application. We are very unhappy with you,” Justice Mohan <a href="https://economictimes.indiatimes.com/markets/stocks/news/reid-taylor-case-court-dismisses-spgps-plea-new-investor-in-the-fray/articleshow/67551449.cms?from=mdr">reportedly</a> told SPGP director Pankaj Agarwal, who was present in court. For now, Yes Bank’s investors are in cloud nine. "The bank also continues to be in advanced discussions with other global and domestic investors," Yes Bank’s statement said, adding that the fundraising plan is subject to regulatory approvals and bank's board and shareholders approvals. The stock has lost over 60% of its value since the start of this year to hit a ten-year low. 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/853337"></div>
]]></cdata></div>







 Hope floats that Yes Bank may come out of its current cash crunch and crisis of confidence, which is why the share price of Yes Bank has more than doubled in recent weeks. But investors must remember the proof of the pudding is in the eating. SEE ALSO: <a href="https://www.businessinsider.in/yes-bank-plans-to-grow-25-by-2020/articleshow/71105078.cms" data-type="tilCustomLink" target="_blank">YES Bank wants to customize branches, ramp up digitize customer acquisition to grow at a breakneck speed of 25%</a> <a href="https://www.businessinsider.in/yes-bank-stock-spikes-11-6-in-early-trade-as-it-stays-clear-of-losses/articleshow/70271361.cms">Yes Bank's share price is not celebrating the surprise profit because it has a capital problem</a> <a href="https://www.businessinsider.in/yes-bank-q1-earnings-report-yes-bank-share-price-q1-earnings-repor/articleshow/70261380.cms">Yes Bank profits dropped 91%-- but it was still way better than expectations</a>

Yes Bank’s white knight SPGP Holdings didn’t have ₹2 crore to bid for Reid & Taylor in Jan 2019

<ul><li> The Mumbai-based bank posted a loss of ₹600 crore for the three months ended September 2019.</li><li>Yes Bank's share price has lost over 60% of its since the start of this year due to mounting cash crunch and the investors' anxiety with bank's earlier management.</li><li>Gross NPA, a measure of bad loans, spiked to 7.39% in the latest quarter, more than double compared to the first three months of 2019.</li></ul>The Mumbai-based Yes Bank posted a shocking loss of ₹600 crore for the three months ended September 2019. While the revenue fell 20%, costs rose during the quarter squeezing the operating profit by 40%. This is largely due to a sharp spike in bad loans. Gross NPA, a measure of bad loans, jumped to 7.39%— more than doubled compared to the level at the which the number was in the first three months of 2019. Gross NPA rose to ₹17,100 crore— nearly two and a half times more compared to three months ago. The amount of loans that turned sour during the quarter was over ₹5,945 crore. Making matters worse, Yes Bank had to take a one-time tax hit of ₹709 crore. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/854404"></div>
]]></cdata></div>





























 In the last quarter ending June 2019, Yes Bank posted as much as ₹114 crore in net profit, 91% less compared to the same period a year earlier. However, it was way better than street predictions that it would post heavy losses. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/854284"></div>
]]></cdata></div>







































 “This was a ‘Quarter of Consolidation’ in which the bank has demonstrated strong resilience in revenues and asset quality. We believe that earnings trajectory should strengthen significantly from hereon,” the bank said in a press release three months ago. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/854366"></div>
]]></cdata></div>

































 The brokerages have also been worried ever since the stock has been taking a beating since March this year. Over 60% of the bank’s share value has been shaved off since the start of this year. The stock of yes Bank even hit a ten-year low a few days ago, but since then it has doubled. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/853337"></div>​
]]></cdata></div>





















































































 Hope floats that there will be a white knight who will bring in the money to help the bank to tide over the current cash crunch. Also read: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="Article" hostid="261" msid="71835877" title="Yes Bank’s white knight SPGP Holdings didn’t have ₹2 crore to bid for Reid &amp; Taylor in Jan 2019" mstype="2" mssubtype="0"></div>





































 “YES Bank’s exposure in Anil Dhirubhai Ambani Group stands at around 2.9% of loan book as per recent Ministry of Corporate Affairs (MCA) filings. Apart from this, the bank’s exposure to the DHFL, Indiabulls and Essel groups combined exceeds around 4% of gross loan book,” said a report by Elara Securities on June 26. SEE ALSO: <a href="https://www.businessinsider.in/yes-bank-plans-to-grow-25-by-2020/articleshow/71105078.cms" data-type="tilCustomLink" target="_blank">YES Bank wants to customize branches, ramp up digitize customer acquisition to grow at a breakneck speed of 25%</a> <a href="https://www.businessinsider.in/yes-bank-stock-spikes-11-6-in-early-trade-as-it-stays-clear-of-losses/articleshow/70271361.cms">Yes Bank's share price is not celebrating the surprise profit because it has a capital problem</a> <a href="https://www.businessinsider.in/yes-bank-q1-earnings-report-yes-bank-share-price-q1-earnings-repor/articleshow/70261380.cms">Yes Bank profits dropped 91%-- but it was still way better than expectations</a>

Bad loans take the wind out of Yes Bank— swings to a loss in the second quarter

<ul><li>The share price has seen sharp rises and falls in recent months-- adding up to a fall of 72% since Gill took over.</li><li><keyword id="45660" type="CITY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> second quarter earnings were worse than expected. </li><li>The stock lost another 3% plus today after the gross NPA rose over 2.5x in last 3 months.</li></ul>Ravneet Gill moved from Deutsche Bank to take over as the Chief Executive Officer of Yes Bank in March 2019. The share price has lost nearly three-fourths of its value since then. The value erosion in the bank’s share price has to do with a lot of older, hidden dirt coming to the fore. But that’s not the only factor. The confidence of both the investors and depositors has been tested repeatedly by events that have followed. The latest among the news around Yes Bank has been the shocking spike in bad loans⁠— nearly two-and-a-half times jump in just 3 months⁠— and the unexpected loss in the September quarter. “The events that have been unfolding recently corroborate our longstanding negative stance on the stock,” a Kotak Institutional Equities report said on November 2. The stock lost another 3% plus in the first trading session after the earnings on November 4. Here’s a look at how Yes Bank has waded through its worst crisis under the stewardship of its new CEO Ravneeet Gill in the last eight months. 
	
	
	
	
	
	
	<div type="Slideshow" msid="71884102" hostid="261" title="Yes Bank under CEO Ravneet Gill⁠— eight months of wild mood swings" firstImageMsid="71884171" slideCount="12"></div>

Yes Bank under CEO Ravneet Gill⁠— eight months of wild mood swings

<ul><li>RBI placed <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes bank</keyword> under a moratorium, capping maximum withdrawals at Rs 50,000 per account. </li><li>Yes Bank’s ATM in south Mumbai's Horniman Circle shutters were pulled down late in the evening.</li></ul>Harried Yes Bank depositors rushed to ATMs to withdraw cash but faced multitude of problems including closed down machines and long queues, after the RBI placed the bank under a moratorium, capping maximum withdrawals at Rs 50,000 per account for a month.Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can't transfer the funds online as well. At an ATM in south Mumbai's Horniman Circle, with the RBI headquarters overlooking it, the shutters were pulled down. The guard on duty said the machine was non-operational before he reported to work late in the evening and he was ordered to shut it after 2200 hrs. In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue of anxious depositors. One man said it was still possible to withdraw up to Rs 50,000 in multiple transactions from the machine. However, another machine nearby had run dry within minutes of the RBI announcement, a woman said. The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender. For the next month, Yes Bank will led by the RBI-appointed administrator <keyword id="219963" type="PERSON" weightage="20" keywordseo="Prashant-Kumar">Prashant Kumar</keyword>, an ex-chief financial officer of SBI.

Yes Bank's ATMs down after RBI restricts withdrawals at ₹ 50,000

Continued uncertainties on capital raising resulted in two domestic rating agencies downgrading private sector lender <keyword id="45660" type="DOMAIN" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> on Thursday. The bank, which has had a tumultuous year since the RBI terminated the term of its co-founder chief executive <keyword id="128581" type="PERSON" weightage="20" keywordseo="Rana-Kapoor">Rana Kapoor</keyword>, has not been able to make progress in its equity raising even after claiming that it has investors willing to pump in USD 3 billion. India Ratings said its downgrade on the bank's long-term issuer rating to 'Ind A' from 'Ind A+', accompanied by a rating watch negative outlook on three instruments, is due to "inadequate progress" on both the quantum and pace of equity infusions.
 The bank had last week said its board is favourably considering a USD 500 million funding offer from Citax Holdings, while a USD 1.2 billion offer from Erwin Singh Braich, a little-known Canadian investor of Indian descent, is still under negotiations.
 The rating agency said the capital is essential for taking the credit cost hit coming its way because of an accelerated recognition of bad assets initiated under new chief executive Ravneet Gill.
 "In the absence of improvements on the capital side, the ability of the bank to manage its asset and liability maturities might be tested further," the agency said, noting that is likely to face balance sheet expansion challenges in the short-to-medium term.
 The bank's low-rated assets will continue to slip into the non-performing assets category, and the need to set aside money for the same along with new slippages will constrain the profitability of the bank, which has shown reported losses in two of the three quarters in 2019.
 The capital constraints had resulted in a 7 per cent decline in the bank's loan book in the September quarter, and the prime reason cited by the management to expedite the infusion was to get into the business-as-usual mode.
 After claiming USD 3 billion of investor interest, the bank had informed that it is actively considering USD 2 billion of capital raise and also named the investors.
 "...clarity is awaited on the potential investors, quantum and the timelines. Furthermore, the various approvals that the bank and/or the investors may require could extend the timeline of the proposed equity infusion," it said.
 The agency appreciated the bank's efforts on the liability management.
 Its peer <keyword id="6354972" type="DOMAIN" weightage="20" keywordseo="icra">Icra</keyword> also downgraded the bank's rating on various instruments and kept the outlook at negative for the same reasons. The agency said it will continue to monitor the capital raising, liquidity/funding profile and asset quality position of the bank, and warned that a continued weakening on the parameters will remain negative rating triggers.
 Despite the negative news on the rating front, Yes Bank's shares gained 6.74 per cent to close at Rs 49.90 apiece on the BSE, against a rise of 0.28 per cent on the benchmark. AA RAM HRS

Yes Bank's lack of funds leads to ratings downgrade

In the aftermath of <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword> crisis, Private sector lender <keyword id="2179992" type="COMPANY" weightage="20" keywordseo="RBL-Bank">RBL Bank</keyword> on Wednesday said it is "well capitalised" and there is no adverse change in its asset quality. The statement comes in the wake of the Yes Bank crisis, following which stock prices of various banks went sharply down. "The management of RBL Bank wishes to address the prevailing concerns around the bank which is based on misinformation, and warrants clarification," it said in a statement. The lender further said that: "We wish to re-emphasize that RBL Bank is a fundamentally strong institution. Rumours around financial health and stability of the institution especially in social media seem to be misplaced, motivated and not based on facts". The bank said it is well capitalised, has healthy liquidity, growth is on track and management remains firmly committed. "There has been no material adverse change in the asset quality since we announced our Q3 financial results on January 22, 2020 and our guidance remains consistent," the bank said. The bank further said that it has a capital adequacy ratio of 16.08 per cent with Tier-1 at 15.02 per cent (significantly higher than the prescribed regulatory requirement at 11.5 per cent and 9.5 per cent respectively). "All our business segments are doing well, we continue to expand presence across newer geographies by adding branches and are also hiring more people as previously planned," the statement said adding that the bank continues to attract additional deposits from retail, corporates and institutional segments. Shares of RBL Bank were trading at Rs 230.25, higher by 10.80 per cent over its previous close in early trade on <keyword id="35140" type="COMPANY" weightage="20" keywordseo="BSE">BSE</keyword>. The stock had witnessed significant downtrend and had slumped over 30 per cent in the previous two trading sessions.

RBL Bank assures its investors that it is financially strong and well capitalized

<ul><li>The Cabinet has approved the reconstruction scheme for Yes Bank, as proposed by the RBI. </li><li>Aside from SBI, the Reserve Bank of India is also in talks with other private investors to rescue the bank. </li><li>Private investors who get shares of Yes Bank cannot have to retain 75% of their stake for three years.</li></ul>The Cabinet has approved the reconstruction scheme for Yes Bank, as proposed by the Reserve Bank of India (RBI). "It will protect depositor's interest, revive the troubled bank, and stabilise India's financial system," <keyword id="7706673" type="UNKNOWN" weightage="20" keywordseo="finance-minister-nirmala-sitharaman">Finance Minister Nirmala Sitharaman</keyword> said. Separately, ICICI Bank said that the board has approved for an equity investment of up to ₹10 billion in equity shares of Yes Bank. The rumour mill in the market was expecting more investment in Yes Bank from the state-owned Life Insurance Corporation of India (LIC). However, the Finance Minister clarified that the RBI is in talks with other private investors to rescue the bank The authorised capital of Yes Bank has been raised manifold to ₹6200 crore from the current ₹1,100 crore current. The limit on withdrawals by depositors will be lifted on the third working day after the official notification of the cabinet decision, at 6 pm. The Reserve Bank of India placed Yes Bank under moratorium and capped the withdrawal by depositors at ₹50,000 till April 3. 
 
 
 
 
 
 
 
 
 <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed flourish-chart" data-src="visualisation/1569976"></div>
]]></cdata></div>

















 The State Bank of India (SBI) will buy 725 crore shares in Yes Bank at ₹10 per share, which adds up to an investment of ₹7,250 crore, giving the country's largest bank a 49% stake in the troubled private bank. The SBI will not reduce its holding below 26% for at least three years from the date of investment. Those private investors who get shares of Yes Bank cannot sell 75% of their stake for three years. "A new board, having at least 2 directors of SBI, will take over within 7 days of the issuance of notification," Sitharaman added. The decision has come a day before the much-awaited quarterly earnings, which have been delayed by a month, from Yes Bank. The numbers are expected to reveal the depth of the rot in the bank which has gone from being one of the country's top banks to embattled one, neck-deep in bad loans, and one with a history of scandals under its earlier promoter Rana Kapoor who was recently forced out by the RBI. With the money of millions of Indian depositors stuck at the bank, the government and other authorities have come together to rescue the bank and stop it further wrecking India's financial system. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/yes-bank-crisis-and-its-domino-effect-on-bonds-mutual-funds-and-other-corporate-defaults/articleshow/74586858.cms" data-type="tilCustomLink" target="_blank">Yes Bank crisis and its domino effect on bonds, mutual funds and other corporate defaults</a> <a href="https://www.businessinsider.in/finance-minister-assures-employment-and-salary-at-yes-bank-at-least-for-one-year/articleshow/74514015.cms" data-type="tilCustomLink" target="_blank">Finance Minister assures employment and salary at Yes Bank at least for one year</a>

You Searched For "Yes Bank news" and got 8 results

SBI statement on proposed Yes Bank bailout is far from reassuring

Sriram Iyer

Yes Bank’s white knight SPGP Holdings didn’t have ₹2 crore to bid for Reid & Taylor in Jan 2019

Sriram Iyer

Bad loans take the wind out of Yes Bank— swings to a loss in the second quarter

Sriram Iyer

Yes Bank under CEO Ravneet Gill⁠— eight months of wild mood swings

Sriram Iyer

Yes Bank's ATMs down after RBI restricts withdrawals at ₹ 50,000

PTI

Yes Bank's lack of funds leads to ratings downgrade

PTI

RBL Bank assures its investors that it is financially strong and well capitalized

PTI

ICICI Bank follows SBI to rescue Yes Bank⁠— and depositors may get to withdraw money sooner than expected

Sriram Iyer

Popular Keywords

Buying Guides