YES BANK

YES Bank is one of the fastest-growing banks with a high – quality customer-centric approach. YES Bank offers a broad base of products to corporates, MSMEs and retail customers. YES Bank has three subsidiaries which are YES bank, YES Securities and YES Asset Management where YES Securities deals with investment banking, merchant banking and brokerage businesses while YES Asset Management deals with mutual funds. The bank shows pan-India presence over all 28 states and 8 union territories in India.

The bank has been in the news in several instances like In April 2021, Yes Bank was fined ₹25 crores (US$3.5 million) for fraudulently selling risky bonds without the necessary warnings and risk assessments and on 8 March 2020, Yes Bank founder Rana Kapoor was arrested by the Enforcement Directorate under charges of money laundering.

On 5 March 2020 in an attempt to avoid the collapse of the bank, which had an excessive amount of bad loans, the Reserve Bank of India (RBI) took control of it. RBI later reconstructed the board and named Prashant Kumar, former Chief financial officer of SBI, as new MD & CEO at Yes Bank. Yes Bank is owned by the State Bank of India who has a 30% stake in the company as of 28 July 2020.

The Board of directors hasn’t recommended any dividend till now. Meanwhile, as per Q4 results YES Bank reported a net loss of Rs 3,787.75 crore for Q4FY21 as against a net loss of Rs 3,668.3 crore in Q4FY20 due to a rise in provisions, net interest income of the bank slumped 22.5% on-year to Rs 987 crore. Also, YES bank’s net NPA ratio rose to 5.88% in Q4FY21 from 4.04 % in Q3FY21 the largely due to the Supreme Court’s standstill on recognition of bad loans till August 31 and the gross (NPAs) stood at 15.41% in Q4 as compared to 15.36% in the Q3. The CASA ratio for this quarter stood at 26.1%.

The Q4 results of YES bank were lamentable.