Knowing this, Yes raised another $2 billion recently in a share sale that saw lukewarm public interest. Yes Bank, which faced a crisis in March this year on account of bad debts, has substantial loans due from the Anil Ambani group, to which it had an exposure of close to Rs 12,000 crore.
Enlisting depositors to top up the capital tank would be a bigger disaster.Yet the June quarter results show an institution still wandering in zombie land: Profit tumbled to $6 million, down 60 per cent from a year earlier.
You agree to pay back the advance by allowing Yes Lender to take a fixed percentage of your daily bank deposits until the entire amount is paid back. Earlier, four private sector lenders Kotak Mahindra Bank, Karnataka Bank, RBL Bank and Karur Vysya Bank had assured customers about the safety of their money and their strong fundamentals.
Your success is our success.
Yes Bank's profitability is the weakest among its peers four months after Indian authorities sponsored a bailout by SBI, the country's largest lender Source: Bloomberg More from Mumbai: Private lender Yes Bank has taken the possession of Anil Dhirubhai Ambani Group (ADAG) headquarters –Reliance Centre- in Mumbai under SARFESI Act for non-payment of dues. That was enough to destroy leftover confidence.
We have 35 years of collective experience in owning and operating small businesses. Making loss provisions for those, as well as writing off existing bad loans, would leave Yes with a 20 per cent smaller book value per share by next March even after the fund-raising, she says. The bank placed an advertisement in the business daily Financial Express Wednesday informing the general public that it took possession of the 21,000-sq ft premises in Santacruz (Mumbai) and also … The Finance Ministry has denied any plan to reintroduce a bill that had proposed forcibly converting deposits into equity. Lenders have a lock-in period of three years, where they are not permitted to sell over 75 percent of their holding in Yes Bank.According to data available on the BSE website, Kotak Mahindra Bank sold 4.76 crore shares after March 17, Federal Bank sold 5.87 crore shares and IDFC First Bank sold 4.02 crore shares.Data released by Yes Bank on its shareholding pattern as of March 31 showed that at least three of the eight financial institutions that had saved Yes bank from falling apart have sold small parts of their stake within two weeks of making the investment.The Reserve Bank of India had on March 13 approved a rescue plan for Yes Bank, where State Bank of India and six other private lenders had bought stakes in the bank.Copyright © e-Eighteen.com Ltd. All rights reserved. Despite efforts to win back savers, deposits have fallen 48 per cent, with sticky current and savings accounts making up only 26 per cent of the total, less than half the level at rival Kotak Mahindra Bank Ltd. Net interest income, which grew 16 per cent to 19 per cent at other lenders, fell at Yes.Whatever else you do with a bank that loses half its deposits in six months, don't leave it with half a rescue.The Band-Aid of rehabilitation is coming apart, though Yes's wounds are far from healed. How's this an efficient use of the resources of taxpayer-funded SBI, the country's largest lender? The shock of the coronavirus lockdown on economic activity could leave several Indian lenders short of capital — just as Yes was in March, when the authorities recapitalized it by making additional Tier 1 bondholders worthless and ordering a consortium led by the State Bank … The latest one to announce a restructuring in compensation is Yes Bank. Will desperate authorities try to square the circle by bailing in depositors? He has denied any wrongdoing.)
The shock of the coronavirus lockdown on economic activity could leave several Indian lenders short of capital - just as Yes was in March, when the authorities recapitalized it by making additional Tier 1 bondholders worthless and ordering a consortium led by the State Bank of India to buy fresh equity.The 30 per cent drop in Yes Bank's advances from June last year should be a warning. If a large chunk of the financial system tries to deleverage, India's post-Covid recovery will be very sluggish. Even after it paid to make up the shortfall, SBI's 48 per cent stake got diluted to 30 per cent.That will put New Delhi in a spot.
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