Yes Bank

ShivRanjan Khatri – A022

Khushi Jain – A017
Shreya Jani – A020
Neha Shah – A039
Vidhi Shah – A041
 Growth of Yes
CASE Summary Bank

Incorporation of Yes Bank by Rana Kapoor and

Ashok Kapoor in 2004.
In 26/11 terror attack Yes Bank lost its co-
founder Ashok Kapoor.
Whole management went into the the hands of
Rana Kapoor.
Rana Kapoor implemented strategy of ‘higher
risk, higher returns’.
Yes bank becomes the fourth largest private
sector bank in India.
Gained very high reputation and trust in the
banking sector.
 Downfall of Yes
Bank

Bad loans and NPAs started becoming

major concerns for yes Bank.
Yes Bank hides its actual NPAs
RBI pointed out difference of Rs. 3000
crores in actual NPAs and fake NPAs.
In September 2018 RBI removed Rana
Kapoor form the chair of CEO,
IMPACT ON THE COMPANY
EFFECT OF MORATORIUM ON INVESTORS:

LIMITATION ON DEPOSITS WITHDRAWAL

RUSH AT THE BANK

SHIFTING OF THE DEPOSITORS FROM PRIVATE TO PUBLIC

BANK

UNSEEN EFFECTS OF MORATORIUM

How did the company handle the crisis?
By Yes Bank:
Company: Café Coffee Day, Cox and King, DHFL, Essel
Group, etc.
Bank required 15000-20000 crores.
Issued FPO, raised Rs.14200 crores.
Shortfall paid by SBI
Auctioned assets of Avantha Group and Oscar Investment
of the Singh Brothers.
Upgraded Rating from CAAI TO B3.
How did the company handle the crisis?
By RBI:
Banking Regulation Act 1949, Section 45
Imposing Moratorium
Appointment of administrator
49 percent stake bought by SBI
Investment of ICICI Bank and HDFC Bank, Axis Bank and
Mahindra Bank
Placed Restriction
 Comparative Analysis!

Global Trust Bank

Established in year 1990.
NPAs worth 1200 to 1500 crores.
Three month moratorium
Merger of GTB with OBC Bank
Effect
Combined assets:
Latest computer systems
Wide coverage of ATM
1117 branches
357 ATMs
14902 employees
RECOMMENDATIONS
 Prevention of risky
investments

Judicious selection of BOD

Separation of ownership and

control of the bank
 Credible selection
of Auditor
Establishment of
separate authority of
resolution
Improving regulation
of RBI
Thank You
ShivRanjan Khatri – A022
Khushi Jain – A017
Shreya Jani – A020
Neha Shah – A039
Vidhi Shah – A041