A timeline of troubles at YES Bank
- Yesterday RBI supersedes
YES Bankboard and limits withdrawals to ₹50,000 for a month.
- The troubles at YES Bank started 2 years back.
- Like many peers, the bank was stressed out as many loans turned bad or non-performing assets.
Like many peers, the bank was stressed out as many loans turned bad or non-performing assets. In fact, it has exposure to institutions and companies which have gone down in the last few years be it IL&FS, Deewan Housing, Jet Airways, Cox & Kings, Altico Power, Coffee Day and more.
However, it is not just bad loans but its credit practices, the manner of leaving caution to wind and corporate governance brought it to its logical end.
Here is how the troubles at YES Bank started.
It is not just the Reserve Bank of India (RBI) but multiple rating agencies and auditors have pointed out to YES Bank’s lending practices.
As the economic downturn landed many of its loans in trouble territory, Yes Bank started hiding the extent of its stressed loans. Soon, the regulator got wind of it and took action that led to the ouster of its founder Kapoor, from the bank.
Apart from credit practices, the bank was hit with reports that markets regulator SEBI would investigate it for insider trading. There were reports linking Kapoor’s personal investments and the affairs of the bank.
While a change in management did bring some hope, a crucial second round of fund raising was mired in several rumours, announced and deals that were never done.
Popular on BI
- 479 leaked photos purporting to show Putin's secret palace, with an ice rink and pole-dancing room, published by Navalny foundation
- SEBI is hiring young graduate professionals for a monthly stipend of ₹60,000, last date is January 25
- The first pig-heart transplant patient was denied a human heart after failing to follow doctors' orders
- This Indian couple plans to get married in a Hogwarts-themed metaverse to beat the pandemic's restrictions
- Here are some of Netaji’s inspirational quotes as India remembers its valiant fighter
- Lifecycle of cryptocurrencies – From creation to trade and destruction
- Reliance Industries net profit more than triples in the last eight quarters to $2.8 billion
- Reliance Retail earns $1.3 billion more than its best-ever quarter