Yes bank is the fourth biggest private bank in the country. Yet, it is on the verge of bankruptcy. Bank shares are continuously falling day by day. It contains more than 1000 branches and 1800 ATMs all over the country. Due to high NPA, the bank has run out of cash. This bank started in 2004 and it was doing everything right. So how does it came in this situation?
How Yes Bank started
It started in 2004 when Rana Kapoor with the help of his relatives started this bank. It was doing well, till the time of the 26/11 attack when Ashok Kapoor died in that incident. After that family disputes led the bank to go on the crisis.
In 15 months loss up to 90%
In 15 months bank situation became so worse that it faced a 90% loss. In 2018, bank total market capitalization was 90,000 crores which got reduced to 9,000 crores only. In 2018 bank shares price were 400 rupees which now comes to 18 rupees. People are not confident to invest in Yes Bank right now.
The main reason for this situation is a bad loan
Many companies who got loans from Yes bank either are in loss or on the verge of bankruptcy. Due to this bank loans got stuck. with the greed of higher interest Yes Bank has given the loan to companies such as India Bulls, DHFL, Jet Airways, C G Power, etc. These companies failed to repay the loan and the Yes bank is facing the consequences.
After Yes Bank situation got worse RBI has taken the control for 30 days. Prashant Kumar has appointed as the bank administrator. Earlier, Central Govt asks SBI to come forward to help Yes Bank. According to some news agency. SBI and LIC may buy 49% of Yes bank shares. Yes, Bank is facing a shortage of cash. RBI has fixed the upper limit of cash withdrawal to 50,000. Special benefits of 5 Lakhs for marriage expenditure, medical as well as education Some experts are saying that the wrong policy of the government is also the reason why some banks have to face this type of situation. Demonetization and GST are one of them.
