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SBI Chairman Rajnish Kumar on Saturday said the bank has received the draft scheme of reconstruction for crisis-hit Yes Bank. Bank officials are doing due diligence of the draft scheme, he added. "We have received draft scheme of reconstruction for Yes Bank. Our investment and legal team is doing due diligence," Kumar told reporters here. He also said many potential investors have approached SBI after seeing the draft scheme. Kumar further said the interest of shareholders will not be compromised. On Friday, the RBI announced a draft scheme of reconstruction for cash-starved Yes Bank. In its draft 'Yes Bank Ltd. Reconstruction Scheme, 2020', RBI said the strategic investor bank will have to pick up 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion. The draft came a day after the RBI imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The RBI also superseded the board of the private sector lender, which is now being headed by former deputy managing director and CFO of SBI Prashant Kumar. See also: <a href="https://www.businessinsider.in/finance/news/finance-minister-assures-employment-and-salary-at-yes-bank-at-least-for-one-year/articleshow/74514015.cms">Finance Minister assures employment and salary at Yes Bank at least for one year</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-share-price-falls-10-after-rbi-limits-withdrawals/articleshow/74504094.cms">Yes Bank share price nose dives 72% after RBI limits withdrawals</a> <a href="https://www.businessinsider.in/finance/news/rbi-has-a-new-scheme-to-rescue-yes-bank-will-be-released-shortly-says-shaktikanta-das/articleshow/74506268.cms">RBI has a new 'scheme' to rescue Yes Bank — will be released shortly, says Shaktikanta Das</a>

SBI says its evaluating draft reconstruction scheme for Yes Bank

Ratings firm <keyword id="6359483" type="COMPANY" weightage="20" keywordseo="Crisil">Crisil</keyword> has reaffirmed BBB rating on <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword>'s over Rs 18,000 crore bonds on the back of continued support by the country's largest lender SBI. Crisil has assigned its 'CRISIL BBB/Stable' rating to the Tier II bonds (under Basel III) of Rs 13,941 crore and infrastructure bonds of Rs 3,780 crore of Yes Bank, the recently bailed out lender said in a regulatory filing on Saturday. The agency has also reaffirmed its 'CRISIL A2' rating on certificates of deposit of Yes Bank. BBB ratings are of moderate safety with regard to servicing of financial obligations. While debt securities with A2 rating are considered to have strong degree of safety regarding timely payment of financial obligations. Such instruments carry low credit risk. "The ratings are underpinned by the expectation of continued extraordinary systemic support from key stakeholders and sizeable ownership by State Bank of India (SBI). "Crisil has taken note of <keyword id="9362711" type="COMPANY" weightage="20" keywordseo="the-yes-bank-ltd-reconstruction-scheme">the Yes Bank Ltd Reconstruction Scheme</keyword>, 2020, (the Scheme) that was notified by <keyword id="1576501" type="COMPANY" weightage="20" keywordseo="The-Government-of-India">the Government of India</keyword> on March 13, 2020," Crisil said on the rating rationale. The reconstruction scheme followed the imposition of a moratorium on Yes Bank by the government on March 5, 2020, including the RBI, in order to bolster the bank's liquidity. The moratorium was lifted on March 18, 2020, and the bank has since been providing full-fledged banking services to customers. Under the reconstruction scheme, Yes Bank has, among other measures, got equity infusion of Rs 10,000 crore by 8 entities, mainly banks led by SBI. "However, the ability of the bank to limit further deposit outflow, and to build a strong retail liabilities franchise and a stable and sound operating business model with strong compliance and governance framework over the medium term, needs to be demonstrated," said the Indian arm of <keyword id="9362712" type="LOCATION" weightage="20" keywordseo="the-sp-global">the S&amp;P Global</keyword>. Crisil also said the bank's asset quality is weak and the impact of the shift in business model to focus on granular retail segments will need to be seen over a longer period. "These will be key rating monitorables. The nationwide lockdown declared by government to contain the spread of Covid-19 pandemic has impacted disbursements and collections of financial institutions," the agency said. The lockdown and restrictions are now being lifted in phases. Any delay in return to normalcy will increase pressure on collections and hence asset quality, it added. Further, moratorium to Yes Bank customers may impact collections in near-term and any change in payment discipline of borrowers can affect delinquency levels post the moratorium, Crisil said. "Given this, gross non-performing assets (NPAs) could rise due to weakening in most sectors. This may increase the credit cost in fiscal 2021, thereby impacting the profitability of the bank, and will be a key monitorable," it said. KPM BAL

Crisil affirms Yes Bank ₹18,000 crore bonds rating at BBB

New Delhi, Mar 13 () The Union Cabinet on Friday approved reconstruction scheme for Yes Bank under which SBI will acquire 49 per cent stake in the crisis-ridden private sector bank. Finance Minister Nirmala Sitharaman said the Union Cabinet has approved the reconstruction scheme for Yes Bank as suggested by the Reserve Bank. On March 5, the RBI imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The RBI also superseded the board and placed it under an administrator, Prashant Kumar, former deputy managing director and CFO of SBI. Giving details about the scheme, Sitharaman said SBI will invest for 49 per cent equity in Yes Bank and other investors are also being invited. There will be a three year lock-in period for all the investors, she said. However, the lock-in period for SBI would be only for the 26 per cent of the shareholding. The authorised capital of the lender has been increased to Rs 6,200 crore from Rs 1,100 crore, the finance minister said. Sitharaman said the scheme has been approved with the objective of protecting the interest of depositors and providing stability to Yes Bank as well as to the entire financial system. The moratorium on the bank will be lifted within 3 days of notification of the reconstruction scheme, while its board will be in place in 7 days, she said. On Thursday, SBI said it will invest Rs 7,250 crore in Yes Bank, which is much higher than Rs 2,450 crore it had planned initially for 49 per cent stake in the private sector lender that began operations in 2004. NKD KPM MJH RVK

Cabinet approves reconstruction scheme for Yes Bank as proposed by RBI

<ul><li>Finance minister Nirmala Sitharaman has asked the Reserve Bank of India (RBI) to identify the people who played a role in creating the <keyword id="8873513" type="UNKNOWN" weightage="20" keywordseo="yes-bank-crisis">Yes Bank crisis</keyword>.</li><li>She has also asked the RBI to assess the adequacy of regulatory and supervisory norms in India.</li><li>Sitharaman wants the crisis to be resolved under due process of law, but with a sense of urgency.</li></ul> Within a day after superseding Yes Bank’s board, the Reserve Bank of India (RBI) released a new scheme for the reconstructed bank. As per the RBI draft, the altered capital of Yes Bank stands at The Reserve Bank of India (RBI) released its new scheme for the reconstruction of Yes Bank. The plan alters Yes Bank’s capital to ₹5,000 crore and also said that a strategic investor will bring in 49% equity into it. 
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 As per the banking regulator, the strategic investor which could be the State Bank of India (SBI) and the Life Insurance Corporation (LIC), will not reduce holding below 26% before three years. In addition, Finance Minister Nirmala Sitharaman also provided assurance to depositors and employees, in a press conference. “Deposits and liabilities will continue unaffected as before. Employment and salary assured, at least for one year,” she said. FM asks RBI to ‘identify the role played by individuals’ Sitharaman also asked the RBI to find out which individuals are responsible for the Yes Bank’s troubles. “I’ve asked the RBI to go into assessing what has caused these difficulties for Yes Bank. Clearly identify the role played by individuals in creating the problem and not-so-comprehensively addressing the problem,” she told reporters at a press conference in Delhi after recapping the timeline of events that led to the private bank’s financial crisis. 
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 The RBI issued a moratorium last night capping withdrawals from Yes Bank at ₹50,000 for the coming month, which was a long time coming, according to Sitharaman. India’s top bank has reportedly been monitoring the activities of Yes Bank since 2017. In addition to finding the perpetrators, Sitharaman has also asked the RBI to analyse India’s current regulatory norms for loopholes. “I’ve also asked the RBI to tell me about the adequacy of the extent of the regulatory norms, supervisory norms. If found inadequate — where and why? I’ve asked them for a report on this,” she said. Assuring depositors’ that their interest is “completely safeguarded”, the finance minister said that the RBI will be addressing the problem as quickly as possible. “I want the RBI to ensure that the due process of law is set to roll with a sense of urgency so that we can find out who led to this problem of this size of magnitude in the Yes Bank,” she said. See also: <a href="https://www.businessinsider.in/finance/news/indias-largest-bank-stock-sees-the-sharpest-fall-in-over-7-years-investors-want-to-say-no-to-yes-bank/articleshow/74504449.cms">India's largest bank stock sees the sharpest fall in over 7 years — investors want to say 'no' to Yes Bank</a> <a href="https://www.businessinsider.in/finance/news/rbi-has-a-new-scheme-to-rescue-yes-bank-will-be-released-shortly-says-shaktikanta-das/articleshow/74506268.cms">RBI has a new 'scheme' to rescue Yes Bank — will be released shortly, says Shaktikanta Das</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">Yes Bank mobile and net banking down after RBI limits withdrawals to ₹50,000</a>

Finance Minister assures employment and salary at Yes Bank at least for one year

<ul><li>Only one-third of Yes Bank’s customers withdrew more than the ₹50,000 during the moratorium period, according to Yes Bank administrator <keyword id="219963" type="PERSON" weightage="20" keywordseo="Prashant-Kumar">Prashant Kumar</keyword>.</li><li>He also noted that there has been more inflow than outflow of funds during the last four days.</li><li>The moratorium placed on the troubled private bank by the Reserve Bank of India (RBI) will end tomorrow, March 18, at 6:00 pm.</li></ul>India’s troubled private bank Yes Bank is scheduled to open up to customers tomorrow after the moratorium placed by the Reserve Bank of India (RBI) comes to an end. Prashant Kumar — former SBI deputy managing director who was instituted as the administer of Yes Bank by the RBI — believes that things are turning around for the better. “In the last four days, we had higher inflows than outflows,” he said during a press conference today, March 17. He also pointed out that only one-third of Yes Bank’s customers withdrew more than ₹50,000 since the moratorium came into effect on March 5. 
 
 
 
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 The Yes Bank moratorium will lift on March 18 at 6:00 pm. Yesterday, March 16, the RBI governor told depositors that there is no rush to withdraw funds from their accounts. “The depositor’s money is absolutely safe. There is no reason for undue worry. This is no need for rushing into withdrawing their deposits or their money which is with Yes Bank,” he said. The one-month moratorium comes to an end Once the moratorium is lifted on March 16, Kumar will be leading the board as chief executive and managing director of Yes Bank. Along with him, Sunil Mehta — former non-executive chairman of Punjab National Bank (PNB) — will be the non-executive chairman of Yes Bank and Mahesh Krishnamurthy will serve as the non-executive director. The moratorium placed a ₹50,000 cap on all withdrawals from Yes Bank. Das lauded Yes Bank’s restructuring scheme as the “first of its time” with public and private banks partnering up to rescue another bank. “In India — on earlier occasions, when there was the failure of a scheduled commercial bank — the usual method has been the amalgamation of the failed bank with a larger entity. This time we have not done so. The identity of Yes Bank is retained and the investors are the banks which have come forward,” said Das. “Never in the banking history of India, depositors have lost money. Their interests have always been protected. The present scheme also protects the interest of depositors,” he added. 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">Yes Bank crisis and its domino effect on bonds, mutual funds and other corporate defaults</a> <a href="https://www.businessinsider.in/thelife/news/yes-bank-founder-rana-kapoor-money-laundering-charges-international-hotels-and-bungalows-in-delhi/articleshow/74644767.cms">Rana Kapoor's hotels, bungalows, flats and paintings — everything that Yes Bank founder is suspected for buying with kickbacks</a> <a href="https://www.businessinsider.in/finance/news/finance-minister-assures-employment-and-salary-at-yes-bank-at-least-for-one-year/articleshow/74514015.cms">Finance Minister assures employment and salary at Yes Bank at least for one year</a>

Only one-third of Yes Bank’s customers withdrew more than ₹50,000 during the 12-day ban

Mumbai, Mar 11 () The reconstruction of crisis-hit Yes Bank may further aggravate liquidity issues for the already cash-starved non-banking lenders, according to a report by Fitch Ratings. Last week, the Reserve Bank of India announced a draft scheme of reconstruction for Yes Bank. The scheme was announced a day after the RBI imposed a moratorium on the bank, restricting withdrawals to Rs 50,000 per depositor till April 3. An extended credit squeeze will likely exacerbate asset quality risks for the financial sector, including non-banking financial companies (NBFCs), which are already facing pressure from a general economic and property-sector slowdown, and an evolving coronavirus situation, Fitch Ratings said in a note. "The non-bank financial institutions (NBFIs) will likely face renewed pressure on funding and liquidity following the RBI's (Reserve Bank of India) takeover of Yes Bank," the rating agency said. Under the scheme, the additional tier-1 (AT1) capital, issued by the Yes Bank under basel-III framework, will have to be written down permanently. "This may trigger another round of investor risk aversion that tightens market access and raises overall funding costs for borrowers, with wholesale NBFCs likely to remain more vulnerable in this situation," it said. The RBI's planned reconstruction scheme broadly protects the deposits and liabilities of the bank. It said there may also be knock-on effects for NBFCs if smaller private banks start to face deteriorating depositor confidence. Banks have been an important source of liquidity for NBFCs amid the funding squeeze in the local debt markets over the past 18 months, and any weakness in bank deposit funding would constrict liquidity available for lending to the NBFC sector, the note said. It said these events add to the challenging operating environment for the country's NBFCs, with rising uncertainty over funding conditions in the near term. This is notwithstanding recent improvement following multiple supportive measures by the authorities, the agency said. HV HRS

Yes Bank reconstruction may further aggravate liquidity issues for NBFCs: Report

<ul><li>The Reserve Bank of India (RBI) has a new ‘scheme’ to revive Yes Bank. </li><li><keyword id="64190" type="POSITION" weightage="20" keywordseo="RBI-Governor">RBI governor</keyword> <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword> told reporters that it will be unveiled ‘shortly’. </li><li>He added that the one-month time period is the outer limit of the time required for RBI’s plan to be successful.</li><li>Shortly after the announcement, former deputy MD and CFO of State Bank of India Prashant Kumar took charge as YES Bank's administrator. </li></ul>The <keyword id="8873513" type="UNKNOWN" weightage="20" keywordseo="yes-bank-crisis">Yes Bank crisis</keyword> continued to unravel as Reserve Bank of India (RBI) governor, Shaktikanta Das, told the press that a new ‘scheme’ is on the cards to rescue the private bank. It will be unveiled ‘shortly’. After issuing a one-month moratorium last night which limits withdrawals from Yes Bank to ₹50,000, Das claims that the country’s top bank has a market-based plan to revive the troubled bank. “We naturally have a market-based resolution of the problem. A bank-led or investor-led resolution of a problem is preferable,” he told reporters. According to him, the one-month time limit will be more than enough for RBI to implement its plan. “It will be done very swiftly, it will be done very fast. 30 days, which we have given, is the outer limit,” he said. Shortly after the announcement, former deputy MD and CFO of State Bank of India Prashant Kumar took charge as YES Bank's administrator. The issue of RBI’s timing Some have criticised the RBI for taking too long to come to Yes Bank’s aid, however, Das claims that the RBI’s timing is appropriate. “There is always a question why RBI asked prematurely, or why it took so long… When we found that we should not wait any longer, RBI decided to intervene. Therefore, I think the timing is quite appropriate,” he said. “You have to give time to the bank, to the management to whatever steps or efforts they need to take. The bank did try over the last several,” he added. Yes Bank’s shares plummeted today morning when markets opened reacting to the news of the moratorium. India’s largest bank State Bank of India (SBI) said that it has ‘in-principle approval’ from the board to invest in the private bank. 
 
 
 
 
 
 
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 See also: <a href="https://www.businessinsider.in/finance/news/rbi-may-have-to-bailout-yes-bank-if-it-fails-to-raise-2-billion-by-march-14/articleshow/74438627.cms">RBI may have to bail out Yes Bank if it fails to raise $2 billion by March 14</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-share-price-falls-10-after-rbi-limits-withdrawals/articleshow/74504094.cms">Yes Bank share price falls 25% after RBI limits withdrawals</a>

RBI has a new 'scheme' to rescue Yes Bank — will be released shortly, says Shaktikanta Das

<ul><li><keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword>’s share price has nearly halved in the past one year, but analysts don’t recommend investors to ‘buy.’</li><li>Even at ₹13.55 per share, there’s a chance that the stock is overvalued.</li><li>Experts believe that Yes Bank may go for another round of funding in the near future to try and shore up its provisions as the second wave of pandemic bears down.</li></ul>When the <keyword id="6354335" type="COMPANY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> had to rescue Yes Bank from collapsing in March 2021⁠ — the same time the pandemic hit us all unexpectedly ⁠— the double blow had taken the wind out of the share price that hit a low of ₹23.95. . Today, it is at ₹13.55 — nearly half of what it was a year go. This, 14 months after the RBI placed Prashant Kumar, the former deputy managing director of the State Bank of India, to save Yes Bank from becoming rubble. At the same time, its peers have made money for their investors while those betting on Yes Bank, or finding a bargain any time in the last one year, have been left disappointed. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change in share price from 6 March 2020 to 6 May 2021 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-16.1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25.1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.8% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-8.9% </td></tr></tbody></table>Source: NSE The latest shock was a ₹3,788 crore net loss in Jan-March 2021 triggering a fresh bout of ‘sell’ calls. Some of those targets, set for any time in the following 12 months, have already been hit. That’s how fast the stock has been falling. Yet, even at this price, analysts aren’t gutsy enough to say ‘buy’. “The real value may be much lower, if you look at book value compared to other banks,” Vikram Sud, chairman and consultant at VSS Advisors and an independent director on the board of DBS Bank, told Business Insider. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target Price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 15 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sell </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emkay Global </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sell </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nirmal Bang </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sell </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sell </td></tr></tbody></table>Source: Respective reports A year earlier, between January and March 2020, people who had an inkling that the company — at the time run by Rana Kapoor who is currently lodged at Taloja Jail — was running on fumes, had already been withdrawing their money. The average depositor followed later. These small deposits, also called CASA (current account-savings account) ratio, are the cheapest source of funds for any bank to make money. There is no run on the bank anymore and so, this number has shown remarkable growth in the last three months. For every ₹10 that depositors had parked in the bank a year ago, there is now ₹15.2. "In the next3years, we continue to stay focused on doubling the deposit book and increasing the customer base to almost 3 times. And we also aim to improve our CASA ratio to 40% and double the cross-sell ratios," Kumar said during Yes Bank's fourth quarter earnings call. However, the street is suspicious of that number too. “If you ask, any customer would not be confident about putting their money in Yes Bank right now. I don’t know if they have enough transparency around what kind of customers are the ones who can give them these deposits,” an analyst from Emkay Global told Business Insider. <cmsannotation type="cmsannotation" annotationid="The depositors’ confidence, or the lack of it, is not the only fear about Yes Bank" comment="subhead" text="The depositors’ confidence, or the lack of it, is not the only fear about Yes Bank">The depositors’ confidence, or the lack of it, is not the only fear about Yes Bank</cmsannotation> The problem with Yes Bank was that, under Rana Kapoor, it had given a lot of loans that wouldn’t return and it kept brushing the bad loans under the carpet until there was a lot more than it could hide. The issue of the elusive borrowers may still persist. Even in the first three months of 2021, the lender had to write off a little more than ₹6 out of every ₹100 it gave out. The amount of such stressed loans, ones that are more likely to turn sour, is still high even though it is a fourth of what it was just three months earlier. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes Bank’s latest financials </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jan-March 2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net interest income </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹987 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-22.5% (YoY) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net loss </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,787.75 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-244.1% (YoY) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Provision for bad loans </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5240 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">138.3% (QoQ) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gross NPA </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.41% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6 bps (QoQ) </td></tr></tbody></table>Source: Yes Bank’s earnings report for Q4 2021 and Q4 2020 <cmsannotation type="cmsannotation" annotationid="Yes Bank CEO wanted to dump bad loans but couldn’t" comment="subhead" text="Yes Bank CEO wanted to dump bad loans but couldn’t">Yes Bank CEO wanted to dump bad loans but couldn’t</cmsannotation> The private bank’s plan was to get a licence from the Reserve Bank of India (RBI) to set up a separate asset reconstruction company (ARC). This ARC would buy the bank’s bad loans at a discount, help it clear the balance sheets, and start growing from there. According to the bank’s chief executive, Prashant Kumar, Yes Bank was hoping to deposit nearly ₹50,000 crore of bad loans to the ARC. However, the RBI turned down that request in March <a href="https://www.livemint.com/industry/banking/rbi-rejects-yes-bank-s-proposal-to-set-up-arc-11615722649056.html">citing</a> a conflict of interest. “Once the stock climbed back up [last year], they [Yes Bank] told investors they would want to apply for a separate ARC and they were confident of getting permission from the RBI, where they would basically park all the bad assets. But that didn’t happen,” said Emkay Global. However, according to Kumar, the option of setting up an ARC is still on the table. "That option is still alive and we would be waiting for more clarification to come from regulator after the report of the expert committee which they have made would come out," he said. Meanwhile, experts believe that Yes Bank may go for another round of funding in the near future to try and shore up its provisions as the second wave of pandemic bears down. “Market discounts all the knowledge that is known as of today. If new information comes out tomorrow, then the stock will react accordingly,” said an analyst on the condition of anonymity. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/good-news-for-tata-steel-jsw-steel-sail-hindalco-and-other-indian-steel-companies/articleshow/82451127.cms">China has broken another emissions record ⁠— and it is good news for some Indian companies</a> <a href="https://www.businessinsider.in/science/space/news/telescope-spots-the-chinese-long-march-5b-rocket-currently-in-an-unstable-orbit-around-earth/articleshow/82450870.cms">Telescope spots the Chinese Long March 5B rocket that is currently in an unstable orbit around Earth</a> <a href="https://www.businessinsider.in/business/startups/news/heres-why-zomato-is-reportedly-cutting-a-300-million-cheque-for-grofers/articleshow/82450062.cms">Here’s why Zomato is reportedly cutting a $300 million cheque for Grofers</a>

Yes Bank shares are cheaper than what they were a year ago — and what could revive the investment, if at all

New Delhi, Mar 7 () The State Bank of India (SBI) on Saturday announced it will pick up a 49 per cent stake in Yes Bank for Rs 2,450 crore and clarified that all the deposits and liabilities of the reconstructed bank will continue in the "same manner". The crisis-hit Yes Bank, which failed to garner investor support in raising capital, was on Thursday superseded by a Reserve Bank appointed administrator, in consultation with the central government, and customers have been restricted with a withdrawal cap of Rs 50,000 only till April 3. "Yes Bank has 255-crore shares of Rs 2 per share. SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank," the State Bank said in a statement. "SBI shall not reduce its holding below 26 per cent before completion of three years from the date of infusion of the capital," it added. The SBI also said that a board of directors will be constituted at the reconstructed Yes Bank comprising chief executive and managing director, non-executive chairman and non-executive directors. "SBI shall have nominee directors appointed on the board of the reconstructed bank. RBI may appoint additional directors to the board. The members of the board so appointed shall continue in office for a period of one year, or until an alternate board is constituted by Yes Bank Ltd," the statement said. The RBI has appointed Prashant Kumar, former deputy managing director and chief financial officer of SBl, as an administrator of Yes bank. Earlier, the Reserve Bank had released the draft of Scheme of Reconstruction of Yes Bank and invited suggestions and comments up to Monday, March 9, 2020. It said that all the employees of the reconstructed Yes Bank shall continue in their service with the same remuneration and on the same terms and conditions of service, at least for a period of one year. "The board of directors of the reconstructed bank will, however, have the freedom to discontinue the services of the key managerial personnel (KMPs) at any point of time after following the due procedure," the SBI statement noted. All the deposits with and liabilities of the reconstructed bank will continue in the same manner, the country's largest lender said, adding, the instruments qualifying as additional tier-1 capital shall stand "written down permanently, in full". Also, the offices and branches will continue to function in the same manner and the bank reconstructed bank would be allowed to open new offices and branches or close down existing offices or branches, the SBI said. "Rights and liabilities of the reconstructed bank all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature shall be effective to the extent and in the same manner, as was applicable before the scheme," it added. Earlier in the day in Mumbai, SBI Chairman Rajnish Kumar said that it had set a maximum investment limit of Rs 10,000 crore for Yes Bank reconstruction process. "I have already set the (investment) boundary of Rs 10,000 crore," Kumar told reporters in Mumbai. The cap of Rs 10,000 crore is based on the assumption of higher capital requirement by the bank, he added. Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise USD 2 billion initially during this fiscal, which was then pruned to USD 1.2 billion as it could not rope in any investor. The SBI chief also said that the once it will complete its due diligence, it will go back to the RBI with bank's comments. KPM MKJ

SBI to buy 49% stake in Yes Bank for Rs 2,450 cr; deposits, liabilities at reconstructed bank to continue in 'same manner'

Hi! <a href="https://twitter.com/dandefrancesco">Dan DeFrancesco</a> in NYC, and it's time for one of my favorite annual traditions: the wildest outfits from the Met Gala. <a href="https://www.insider.com/met-gala-best-wildest-celebrity-red-carpet-looks-2023-5">Check out the pics here.</a>As entertaining as it is to see celebrities dress up in ridiculous costumes, <a href="https://www.insider.com/couture-cockroach-roach-red-carpet-met-gala-moment-2023-5">I really think the cockroach took the cake this year.</a>Today, we've got stories on <a href="https://www.businessinsider.com/fintech-finix-payments-processor-facilitator-richie-serna-2023-5">a payments startup looking to step its game up</a>, <a href="https://markets.businessinsider.com/news/stocks/short-seller-hindenburg-research-wall-street-legend-carl-icahn-enterprises-2023-5?_gl=1*tqano4*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY4MzA1MzgyOS4xMTQuMS4xNjgzMDU2MjI2LjU1LjAuMA..">Carl Icahn getting a taste of his own medicine</a>, and <a href="https://www.businessinsider.com/what-hollywood-writers-wga-strike-means-for-tv-shows-movies">what the Hollywood writers' strike means for your favorite shows and movies</a>.But first, we're not out of the woods just yet.If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-on-wall-street">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here</a>.<a href="https://markets.businessinsider.com/news/stocks/pacwest-western-alliance-stock-regional-bank-crash-jpmorgan-jamie-dimon-2023-5"></a>1. <a href="https://knowyourmeme.com/memes/ah-shit-here-we-go-again">Ah shit, here we go again.</a>This is the banking crisis <a href="https://www.youtube.com/watch?v=5iln6fkwJOU" target="_blank" rel="noopener">that doesn't end.</a>Yes, it goes on and on, my friend.Some banks, started buying long-dated assets not knowing rates would rise. And they'll continue failing forever, just because...So, about that banking crisis being over.If the past few months have taught us anything, it's that the end is never really the end.When regulators announced they were <a href="https://www.businessinsider.com/us-government-bails-out-silicon-valley-bank-depositors-fdic-2023-3">backstopping deposits at Silicon Valley Bank</a>, some viewed it as bringing stability to the market. It didn't. When big banks pledged <a href="https://markets.businessinsider.com/news/stocks/first-republic-bank-svb-morgan-stanley-jpmorgan-talks-financial-aid-2023-3?_gl=1*oxwn0d*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY4MzA0NzE5Mi4xMTIuMS4xNjgzMDQ4MTIxLjQ3LjAuMA..">$30 billion to First Republic</a> to calm nerves, it seemed like things would get better. They didn't.When the crisis went international and <a href="https://www.businessinsider.com/ubs-credit-suisse-deal-lacks-discretion-public-spotlight-2023-3">UBS was forced to acquire Credit Suisse</a>, it appeared we'd seen the worst of it. We hadn't.When JPMorgan stepped up <a href="https://www.businessinsider.com/first-republic-bank-taken-jpmorgan-fdic-fails-find-buyer-2023-5">to buy a still-ailing First Republic</a>, the world's top banker, <a href="https://www.businessinsider.com/jamie-dimon-jp-morgan-ceo-first-republic-bank-rescue-2023-3">Jamie Dimon</a>, deemed it the end of the crisis. (<a href="https://markets.businessinsider.com/news/stocks/jpmorgan-first-republic-rescue-banking-turmoil-citi-ceo-jane-fraser-2023-5?_gl=1*1s81v91*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY4MzA0MjU3OS4xMTEuMS4xNjgzMDQzMjU4LjE3LjAuMA..">And he wasn't the only one.</a>) He was wrong.The ink is barely dry on JPMorgan's agreement with regulators and it seems more regional banks are feeling the pain. PacWest and Western Alliance both saw their shares slide considerably on Tuesday, <a href="https://markets.businessinsider.com/news/stocks/pacwest-western-alliance-stock-regional-bank-crash-jpmorgan-jamie-dimon-2023-5">Insider's Morgan Chittum reports.</a>It's not just investors that are skittish. Customers of regional banks are starting to ask questions about how safe their local lender is, <a href="https://www.ft.com/content/32342f88-2d24-4198-90f1-89eb23bd1def" target="_blank" rel="noopener">the Financial Times reports.</a>And to be honest, I get it. While I might not agree with the sentiment, I understand why anyone banking with a regional player might start second-guessing that choice. Which begs the question: Will this crisis ever officially end?First Republic's failure and acquisition by JPMorgan could lead more American's to reconsider their banking relationship and <a href="https://www.businessinsider.com/how-jpmorgan-benefits-from-first-republic-fdic-2023-5">move money to a bigger bank.</a> That, in turn, will lead to another bank failing, which means even more American's will reconsider their banking relationship and move money to a bigger bank.And that'll lead to...well, you get the idea.<a href="https://markets.businessinsider.com/news/stocks/pacwest-western-alliance-stock-regional-bank-crash-jpmorgan-jamie-dimon-2023-5">Here's more on how regional banks are still getting slammed despite JPMorgan's Jamie Dimon calling an end to the bank crisis.</a>In other news:<a href="https://www.businessinsider.com/what-hollywood-writers-wga-strike-means-for-tv-shows-movies"></a><div type="image" title="Stefon Saturday Night Live" height="1430" width="1908" msid="99964694" hostid="261"></div>2. Fintech Finix wants to play with big dogs. The startup became a payments processor as it looks to compete with industry giants like FIS and Fiserv that dominate the space. <a href="https://www.businessinsider.com/fintech-finix-payments-processor-facilitator-richie-serna-2023-5">Read more on CEO Richie Serna's strategy.</a>3. Ain't no fun when the rabbit's got the gun. The king of corporate takeovers has some barbarians at his own gate. Short seller Hindenburg Research <a href="https://markets.businessinsider.com/news/stocks/short-seller-hindenburg-research-wall-street-legend-carl-icahn-enterprises-2023-5?_gl=1*tqano4*_ga*NDEwMTkzOTE2LjE2NjYxMjcyNDQ.*_ga_E21CV80ZCZ*MTY4MzA1MzgyOS4xMTQuMS4xNjgzMDU2MjI2LjU1LjAuMA..">published a report on Carl Icahn's holding company</a>, Icahn Enterprises. Among the allegations: The firm has inflated asset valuations and runs like a Ponzi scheme. Icahn, for what it's worth, <a href="https://www.prnewswire.com/news-releases/icahn-enterprises-issues-statement-regarding-short-seller-report-301813690.html" target="_blank" rel="noopener">dismissed the report.</a> But that didn't stop an <a href="https://twitter.com/BillAckman/status/1653455633914396673">old Wall Street rival from getting his shots in.</a>4. Here's what some of the top execs in finance think about the Fed's plan for rates. With the Federal Reserve set to announce what it's going to do with interest rates, plenty of people have thoughts. <a href="https://www.businessinsider.com/milken-2023-federal-reserve-interest-rate-hike-outlook-preview-highlights-2023-5">Here's what five executives at the famous Milken Institute Global Conference had to say on Fed policy.</a>5. Betting big on media, entertainment, and gaming. Alignment Growth just raised $360 million with plans to invest in everything from live experiences to a video game developer. <a href="https://www.businessinsider.com/alignment-growth-bewkes-tsujihara-iosilevich-invest-360-million-media-sports-2023-5">More on why it's so bullish on the space.</a>6. These are all the CEOs saying AI is going to wipe out jobs at their companies. From IBM to Amazon, leaders at some of the biggest companies have hinted at the impact AI will have on their workforce. <a href="https://www.businessinsider.com/ai-tech-jobs-layoffs-ceos-chatgpt-ibm-2023-5">Here's what they've said so far on the topic.</a>7. Here's what could happen if the US defaults on its debt. There's been lots of talk about the US reaching its debt ceiling. So what does it all mean? If you're a masochist, <a href="https://www.businessinsider.com/what-happens-if-congress-doesnt-raise-debt-ceiling-jobs-retirement-2023-5">here's the worst-case scenario.</a>8. When the Airbnb you book is not where you think it is. Here's a wild story about a man whose home <a href="https://www.insider.com/airbnb-bait-switch-los-angeles-man-2023-2">was caught up in a bait-and-switch Airbnb scam.</a> And if you're considering booking an Airbnb for your next vacation, <a href="https://www.insider.com/airbnb-bait-and-switch-scam-how-to-get-money-back-2023-2">here's how to avoid some of the most common scams.</a>9. Put that wardrobe to use. Wondering what to do with those nice work clothes you never wear to the office anymore? (<a href="https://www.businessinsider.com/jpmorgan-new-in-office-policy-impacts-other-banks-2023-4">No offense, JPMorgan employees.</a>) You can make some serious cash renting them out. <a href="https://www.businessinsider.com/clothing-rental-business-how-make-money-2023-4">Here's how one woman made nearly $5,000 a month with the side hustle.</a>10. About the Hollywood writers' strike. Writers Guild of America members <a href="https://www.businessinsider.com/hollywood-writers-are-striking-over-pay-stopping-production-on-shows-2023-5">are officially on strike</a>. If you're wondering what that means for your favorite shows and movies, <a href="https://www.businessinsider.com/what-hollywood-writers-wga-strike-means-for-tv-shows-movies">here's a rundown.</a>Curated by Dan DeFrancesco in New York. Feedback or tips? Email <a href="mailto:ddefrancesco@insider.com">ddefrancesco@insider.com</a>, tweet <a href="https://twitter.com/dandefrancesco">@dandefrancesco</a>, or <a href="https://affiliate.insider.com?h=b83e78f6bb45aba7034c3baf1ec66d1b6c1d3afa26264bdb8604d5b9f2351262&amp;postID=64513979c4cc6f2ceb729396&amp;site=bi&amp;u=https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdan-defrancesco-29b12449%2F">connect on LinkedIn</a>. Edited by Jeffrey Cane (tweet <a href="https://twitter.com/jeffrey_cane">@jeffrey_cane</a>) in New York and Hallam Bullock (tweet <a href="https://twitter.com/hallam_bullock">@hallam_bullock</a>) in London.

This is the banking crisis that doesn't end

IDFC First Bank on Sunday said it will make an equity investment of Rs 250 crore in beleaguered Yes Bank to acquire 25 crore equity shares. "...duly authorized committee of the Board of Directors of IDFC FIRST Bank Ltd had at its meeting held on March 14, 2020 accorded approval for an equity investment of upto Rs 250 crores comprising upto 25 crore equity shares at a price of Rs 10 each and face value of Rs 2 each, under the proposed Scheme of Reconstruction of Yes Bank Ltd under the Banking Regulation Act, 1949, subject to regulatory and government approval(s), if any," the bank said in a BSE filing. Earlier on Saturday, Federal Bank had committed to investing Rs 300 crore in Yes Bank for subscription of its 30 crore shares. The Centre on Saturday notified the YES Bank Limited Reconstruction Scheme, 2020, a day after the Union Cabinet approved a reconstruction plan proposed by the RBI for bailing out fund-starved Yes Bank. The authorised capital of Yes Bank has been increased to Rs 6,200 crore, Finance Minister Nirmala Sitharaman said on Friday. As per the reconstruction scheme, moratorium on the troubled lender will be lifted on March 18. Under the plan, state-run SBI will infuse Rs 7,250 crore in the crisis-ridden bank and take 49 per cent equity. As per the rescue plan, ICICI Bank will invest Rs 1,000 crore, mortgage lender HDFC Rs 1,000 crore, Axis Bank Rs 600 crore, Kotak Mahindra Bank Rs 500 crore, Bandhan Bank and Federal Bank Rs 300 crore each. There will be a three year lock-in period for all the investors. However, the lock-in period for SBI would be only for 26 per cent of shareholding. It would be 75 per cent in case of other investors. KKS RVK

Yes Bank gets Rs 250 crore from IDFC First Bank

<ul><li>The Yes Bank crisis could have a cascading effect on the stock markets. </li><li>Businesses with deposit accounts at Yes Bank may not be able to make payments on loans taken from other financial institutions. </li><li>Mutual funds have a total exposure of ₹2,848 crore, and most are already side-pocketing the risk. </li></ul>As the Yes Bank crisis continues to unfold, not everyone is on board with the Reserve Bank of India’s (RBI) scheme to restructure the troubled bank. Mutual funds stand to lose millions and the moratorium limiting withdrawals to ₹50,000 could spell trouble for companies who are using the bank’s services. “With large-sized withdrawals disallowed, a number of companies availing of facilities from Yes Bank could face disruption in their operations, which may constrain their ability to service financial obligations on time,” said global rating firm CRISIL in a statement. As the fourth largest private sector bank in the country, Yes Bank has an asset book of more than ₹3.45 crore and deposits exceeding ₹2 lakh crore. CRISIL believes that the moratorium has “material implications” for companies using Yes Bank for loans, deposits, bonds and other instruments. How Yes Bank crisis could affect other banks The fall out from funds being stuck at the troubled bank could result in companies defaulting on their loans from other financial institutions since their payments are linked to deposit accounts at Yes Bank. It may further aggravate liquidity issues for the already cash-starved non-banking lenders, according to a report by <a href="https://www.businessinsider.in/business/news/yes-bank-reconstruction-may-further-aggravate-liquidity-issues-for-nbfcs-report/articleshow/74579814.cms">Fitch Ratings.</a> “There could also be a marginal uptick in delinquencies in retail loans of banks and non-banks,” said CRISIL. Companies using Yes Bank’s letters of credit and bank guarantees to leverage their businesses may also have to rethink their plans. “There are also some securitisation transactions of other originators where Yes Bank is a counterparty - either as the bank where credit enhancement in the form of fixed deposits is being maintained, or as the collection and paying agent for the transaction,” said CRISIL. NSE Clearing (NCL) and India Clearing Corporation (ICCL), the biggest clearing firms in the country, have told members that any existing benefit toward bank guarantees and fixed deposit receipts issued by Yes Bank were to be squared off by Wednesday, March 11. “The RBI decision has a cascading effect on trading members and their clients at large since they may not be able to cover their positions from their own funds,” Association of National Exchanges (ANMI) president Vijay Bhushan told <a href="https://economictimes.indiatimes.com/markets/stocks/news/yes-bank-fds-bank-guarantees-no-longer-valid-traders-have-to-arrange-funds-by-wednesday/articleshow/74545067.cms">ET.</a> Bonding over bonds Nearly 32 mutual funds are exposed to Yes Bank’s debt with a total exposure of ₹2,848 crore. Many of them are AT 1 (Additional 1) bonds, set to be written off completely. Mutual funds owned by Nippon, Kotak, and Franklin <a href="https://economictimes.indiatimes.com/markets/stocks/news/yes-banks-at1-bond-write-down-these-mfs-pension-funds-stand-to-lose-most/articleshow/74555609.cms">have the most to lose</a>. After news broke of RBI superseding Yes Bank’s board, rating agency ICRA downgraded Yes Bank’s debt instruments to a “D” — below investment grade. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td colspan="2" style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mutual fund owners with the most to lose from RBI’s scheme to restructure Yes Bank: </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mutual fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Loss </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon Mutual Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,500 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Franklin Mutual Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹590 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Barclays Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹246 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Mutual Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹130 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹100 crore </td></tr></tbody></table> Nippon India Mutual Fund, which has the largest exposure, was the first to side-pocket the risk. The move prevents distressed assets, like Yes Bank, from damaging returns generated from better-performing assets. PGIM India Mutual Fund, UTI Mutual Fund, Franklin Templeton Mutual Fund and Baroda Mutual Fund <a href="https://www.bloombergquint.com/business/yes-bank-news-two-more-mutual-funds-side-pocket-exposures-to-yes-bank-bonds">soon followed suit</a>. Axis Trustee Services, on the other hand, filed a petition to delay any action until its bond investors have had the time to review its impact. It asks the court to give enough time for bond investors to review the proposed plan. <div type="twitter" handle="LiveLawIndia" handlename="Live Law" image="http://pbs.twimg.com/profile_images/897707258334916608/nMQWwGlo_normal.jpg" favoritecount="11" retweetcount="6" status="Axis Trustee Services Ltd, a debenture trustee of #Yes_Bank , on Monday petitioned the Bombay High Court against th… https://t.co/pE53lzxTwl" createdat="1583913099000" id="1237647359091195905"></div>

 According to Axis, the proposal to write off the value of over ₹8,000 AT-1 bonds is unjustified and goes against global best practices. It argues that the scheme put forth by the RBI gives preference to Yes Bank promoters despite their shady record and mismanagement of resources — which landed the bank in hot water, to begin with. The possibility of the moratorium being cut short The proposed restructuring of Yes Bank includes recapitalisation of ₹20,000 crore with equity contribution and bulk deposits of around ₹30,000 crore by multiple-state owned banks. “If equity commitments are in place and CD funds flow in, the moratorium may be lifted by the end of the week,” RBI administrator of Yes Bank told reporters on March 10. CRISIL believes that the challenges in the face of the Yes Bank crisis are likely to be temporary, since they are a direct result of a crunch in liquidity and cash flow. Nonetheless, the temporary crunch will result in systemic risk until the moratorium is resolved — like the cost of borrowing and capital-raising becoming tougher for other banks Sources told <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/under-the-scanner-rbi-to-check-if-yes-bank-auditor-bsr-had-raised-red-flags/articleshow/74568396.cms">ET</a> that RBI is checking with Yes Bank’s auditor — BSR &amp;Co, which is a part of KPMG India — whether or not the proposal for SBI to buy a stake in Yes Bank will have any “material impact” on the existing accounts with the bank. Another one bites the dust The repeated incidents of large — supposedly ‘too big to fail’ — companies are becoming increasingly rampant. Last September, the Mumbai-based Punjab and Maharashtra Cooperation (PMC) Bank faced a similar crisis. It was placed under an RBI administrator for six months after under-reporting of loans going bad. However, banks aren’t the only ones going down. The collapse of Jet Airways and Cox &amp; Kings left many investors — and travelers — stranded. Even stockholders in IL&amp;FS and DHFL saw their money disappear overnight due to mismanagement, fraud and corruption within the companies. More than just getting Yes Bank on its feet, the central government and the RBI will have to address the trust deficit that now plagues the market. See also: <a href="https://www.businessinsider.in/finance/news/indias-largest-bank-stock-sees-the-sharpest-fall-in-over-7-years-investors-want-to-say-no-to-yes-bank/articleshow/74504449.cms">India's largest bank stock sees the sharpest fall in over 7 years — investors want to say 'no' to Yes Bank</a> <a href="https://www.businessinsider.in/finance/news/finance-minister-assures-employment-and-salary-at-yes-bank-at-least-for-one-year/articleshow/74514015.cms">Finance Minister assures employment and salary at Yes Bank at least for one year</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-share-price-falls-10-after-rbi-limits-withdrawals/articleshow/74504094.cms">Yes Bank share price nose dives 72% after RBI limits withdrawals</a>

Yes Bank crisis and its domino effect on bonds, mutual funds and other corporate defaults

<ul><li>Yes Bank’s share price dipped to 25% as markets opened today morning and is continuing to fall up to 72%.</li><li>Yesterday, the bank’s shares shot up by 27% on rumours that the State Bank of India (SBI) will be bailing out the private bank.</li><li>The dip comes after the Reserve Bank of India’s (RBI) limited withdrawals to ₹50,000.</li><li>Global brokerage firm JP Morgan had earlier said that its share price could fall to ₹1 soon. </li></ul><keyword id="4816246" type="PERSON" weightage="20" keywordseo="Yes-Bank-Share-Price">Yes Bank share price</keyword> ballooned yesterday after rumours of India’s biggest bank State Bank of India (SBI) coming to its rescue. However, after last night’s moratorium issued by the Reserve Bank of India (RBI), stocks plummeted to ₹27.65 as markets opened today. Before noon, the stock's share price had gone down by 72%. 
 
 
 
 
 
 
 
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 Currently, Yes Bank is trading at ₹15.40 — having lost over half its value since yesterday. The moratorium puts a limit of ₹50,000 on withdrawals for the coming month and this the recent drop may only be the beginning. The shares of Yes Bank, which were trading at around ₹37 a piece yesterday, may only be worth ₹1 soon according to global brokerage firm JP Morgan. After the RBI’s announcement, Yes Bank’s net banking and mobile banking services were pulled offline. Its ATMs also reportedly ran dry after a rush of people trying to withdraw money. Earlier today, March 6, RBI governor Shaktikanta Das announced that the RBI has a 'scheme' revive the private sector bank and that it will be announced 'shortly'. Shortly after the announcement, former deputy MD and CFO of State Bank of India Prashant Kumar took charge as YES Bank's administrator Will the SBI bailout Yes Bank? Investors may still be hoping that the SBI will bail Yes Bank out. A report by <a href="https://economictimes.indiatimes.com/markets/stocks/news/sbi-lic-to-acquire-half-of-yes-bank-at-rs-2-per-share/articleshow/74492835.cms">ET</a> hinted that the SBI and the Life Corporation of India (LIC) would acquire 49% stake in the private bank at ₹2 per share for a grand total of ₹490 crore. However, the government-owned bank has <a href="https://www.businessinsider.in/stock-market/news/yes-bank-share-price-and-sbi-share-price-after-statement-on-bailout/articleshow/74500980.cms">officially said</a>, “No such negotiations or events took place,” in a statement filed with the Securities and Exchange Board of India (<a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/477eac4e-fa44-4a91-82e8-7394795624d4.pdf">SEBI</a>) late last night. The bank reportedly lost 7% of its deposits in Q2 2020 and posted a loss of almost $85 million — double what analysts had expected. It has been skating on dangerously thin ice the last few months as it hunted for fresh funding to the tune of $2 billion. After Yes Bank sought a 45-day extension to furnish its third-quarter earnings, Bloomberg reported that it had brought former CEO of Deutsche Bank and president of Cantor Fitzgerlad, Anshu Jain, on board to help raise funds. However, with the fast-approaching March 14 deadline, sources told Mint that RBI may have to intervene. The options of the table varied from a direct bailout to selling pooled assets to a public sector bank. The fear was that the downfall of Yes Bank would worsen the slowing credit growth rate in India. As of now, the horizon looks bleak for Yes Bank as its depositors scramble to pull their funds despite RBI’s assurances that there is no need to panic. Equity analyst Ravikant Anand Bhat told Bloomberg, “It looks like the end of the road for the company. A bank is placed under moratorium only when other efforts to turnaround and revive the bank have failed.” The unfolding crisis at Yes Bank may also end up being how things can go wrong for small investors looking to make a quick buck on rumours. See also: <a href="https://www.businessinsider.in/stock-market/markets/news/yes-bank-share-price-and-shareholding-charts-show-how-rumours-were-used-to-trap-small-investors/articleshow/74500017.cms">In the Yes Bank crisis, one chart shows how rumours were used to trap small investors</a> <a href="https://www.businessinsider.in/stock-market/news/yes-bank-share-price-and-sbi-share-price-after-statement-on-bailout/articleshow/74500980.cms">SBI statement on proposed Yes Bank bailout is far from reassuring</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">Yes Bank mobile and net banking down after RBI limits withdrawals to ₹50,000</a>

You Searched For "yes bank reconstruction scheme" and got 13 results

SBI says its evaluating draft reconstruction scheme for Yes Bank

PTI

Crisil affirms Yes Bank ₹18,000 crore bonds rating at BBB

PTI

Cabinet approves reconstruction scheme for Yes Bank as proposed by RBI

PTI

Finance Minister assures employment and salary at Yes Bank at least for one year

Prabhjote Gill

Only one-third of Yes Bank’s customers withdrew more than ₹50,000 during the 12-day ban

Prabhjote Gill

Yes Bank reconstruction may further aggravate liquidity issues for NBFCs: Report

PTI

RBI has a new 'scheme' to rescue Yes Bank — will be released shortly, says Shaktikanta Das

Prabhjote Gill

Yes Bank shares are cheaper than what they were a year ago — and what could revive the investment, if at all

Prabhjote Gill

SBI to buy 49% stake in Yes Bank for Rs 2,450 cr; deposits, liabilities at reconstructed bank to continue in 'same manner'

PTI

This is the banking crisis that doesn't end

Dan DeFrancesco

Yes Bank gets Rs 250 crore from IDFC First Bank

PTI

Yes Bank crisis and its domino effect on bonds, mutual funds and other corporate defaults

Prabhjote Gill

Yes Bank share price nose dives 72% after RBI limits withdrawals

Prabhjote Gill

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