Between , when it was launched, and , Yes Bank was one of the buzziest banks. In , UBS, a global financial services company, raised the first red flag about its asset quality. The UBS report stated that Yes Bank had loaned more than its net worth to companies that were unlikely to pay back. However, Yes Bank continued to extend loans to several big firms and became the fifth-largest private sector lender see Chart 1.
YES Bank crisis: How SBI executed a perfect 'rescue plan'
What Learnings retail investors should take from Yes Bank Crisis? Let do comparative analysis of catching a falling knife vs bottom fishing of stocks. The stock fell to their lowest levels after the Reserve Bank of India took over its board and imposed a month-long moratorium. This site uses Akismet to reduce spam. Learn how your comment data is processed.
The RBI is also devising a rescue plan for the bank. The bank has also experienced serious governance issues and practices in recent years, leading to a steady decline. Yes Bank has struggled to raise capital it needs to stay above regulatory requirements as it battles high levels of bad loans.
Is the YES bank crisis over? Read this post to understand the YES Bank story in detail. Banks play a pivotal role in the economic growth of the country. Failure of a bank, irrespective of the ownership, private sector or public sector, can impact everyone.
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