Posted on: March 15, 2020 Posted by: Rushik Gajjar Comments: 0
Reconstruction of Yes Bank
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The final reconstruction scheme for  Yes Bank  notified by the cabinet on 13 March

Introduction About Yes Bank !

Yes Bank Limited is an Indian public bank headquartered in Mumbai, India and was founded by Rana Kapoor and Ashok Kapur in 2004. It offers wide range of banking and financial products for corporate and retail customers through retail banking and asset management services.

Yes Bank has equities listed on the Bombay Stock Exchange and the National Stock Exchange of India and has bonds listed on London stock exchange. Yes Bank was listed in the stock exchanges of India post its IPO in May 2005 at an issue price of ₹45

Yes Bank : Reconstruction  Plan... 1
The youngest bank of the lot and
the fastest growing private sector bank – NEXT WEB NEWS

Although there was a time that yes bank has been 2nd ranked private sector bank at the Financial Express Awards for India’s Best Banks of 2006. In addition, YES BANK has been ranked No. 1 on the key parameter of Growth, among 64 Private, Public and Foreign Banks in India.

What is the full form of Yes Bank ?

Youth Enterprise Scheme Bank

Bank provides services and products are :

  • Yes Bank Business Loan
  • Yes Bank Car Loan
  • Yes Bank Credit Card
  • Yes Bank Debit Card
  • Yes Bank FD Rates 2020
  • Yes Bank Gold Loan
  • Yes Bank Home Loan
  • Yes Bank Loan Against Property
  • Fixed Deposit
  • Recurring Deposit
  • Mobile Banking
  • Net Banking

How many branches does Yes Bank have in India ?

Yes Bank  provides you an all-inclusive banking experience through an extensive network of more than 1000 Branches in India. And 1800 ATMs across all 29 States and 7 Union Territories of India.

Who is recent CEO of Yes Bank ?

The Government has constituted new board of directors for Yes Bank after its troubling. And has appointed former SBI banker Prashant Kumar as the new Chief Executive Officer of the financially troubled Yes Bank. Sunil Mehta to be Non-Executive Chairman. – Next Web News

Other Board members include Mahesh Krishnamurthy and Atul Bheda, both as Non-Executive Directors.

Who invest in Yes Bank as part of reconstruction ?

There are many to invest and supports yes bank. Such as SBI and Bandhan Bank.

Other participants in the plan include HDFC Ltd, ICICI BankAxis Bank, Kotak Mahindra Bank, RK Damani, Rakesh Jhunjhunwala and the Azim Premji Trust. SBI and the other investors will infuse a total ₹12,000 crore, said people with knowledge of the matter. SBI had said Thursday it will invest ₹7,250 crore in Yes Bank.

Union Finance Minister Nirmala Sitharaman said “the moratorium on Yes bank will be lifted within 3 days of the notification and a new board, having at least 2 directors of SBI, will take over within 7 days of the issuance of notification”.

  • SBI said it will invest Rs 7,250 crore in Yes Bank.
  • Bandhan Bank to invest Rs 300 crore in Yes Bank as part of reconstruction plan.
  • ICIC Bank and HDFC will invest Rs 1,000 crore each in Yes Bank.
  • Axis Bank will invest Rs 600 crore by buying 60 crore shares and Kotak Mahindra Bank Rs 500 crore through buying 50 crore shares.

SBI said it will invest Rs 7,250 crore in Yes Bank, which is much higher than the Rs 2,450 crore it had planned initially for 49 per cent stake in the private sector lender that began operations in 2004.

SBI will be the lead investor bank. Equity share : 3000 cr of ₹2 each. share allotment at ₹10/share. Maximum at 49%; Minimum at 26% for 3 year lock in of minimum 26%.

And for other investor, voting rights : Lower of extent of shareholder or 9% which ever is lower. On the other hand, RBI may permit voting rights up to 15% if “fit & proper” criteria met

Yes Bank : Reconstruction  Plan... 2
SBI invest Rs 7,250 crore in Yes Bank – NEXT WEB NEWS

Bandhan Bank said its board has “granted approval for an equity investment of Rs. 300 crore for acquiring upto 30 crore equity shares of Rs 2 each of YES Bank Limited, for cash, at a premium of Rs 8 per equity share, under the proposed Scheme of Reconstruction of YES Bank Limited under the Banking Regulation Act, 1949, subject to regulatory and government approval”.

“Yes Bank crisis Updates: We can assure all depositors that their money is safe”, says Nirmala Sitharaman (Recent Finance Minister of India).

Yes Bank shares locked in for 3 years for investors.

They will also have 3 year lock-in for 75% of the investment. 3 year lock-in for existing shareholders with more than 100 shares for 75% of investment. The new board will be formed within 7 days of moratorium being lifted.

Yes Bank : Reconstruction  Plan... 3
3 year lock-in for 75% of the investment – NEXT WEB NEWS

Only those shareholders who have less than 100 shares in the bank, can sell their entire shareholding.

Total write down of Yes Bank’s additional tier-1 bonds will impact not only institutional investors, but also retail investors.

Your risk is also limited because you hold the underlying shares. However, if you are unable to sell the underlying shares and the price rises, your risk becomes unlimited and can you can face severe losses. Brokers who have taken Yes Bank shares as collateral may also demand additional collateral from clients.

“Index funds and ETFs are obliged to follow the Index. Yes Bank is part of the Nifty 50 Index and Nifty Bank Index and hence held by many index funds and ETFs. If these entities are locked in for 3 years, they will not be able to honour their own mandates.” said Anil Ghelani CFA – Head of Passive Investments, DSP Mutual Fund

There should no need to be panic about the lock-in act for shareholders it is safe of your investment at new reconstructed Yes Bank – NEXT WEB NEWS

Yes Bank Posts record ₹18.5k cr Loss In December Quarter

There was posted a net loss of Rs 600.08 crore in the previous quarter.

Yes Bank reported a loss of Rs 18,564 crore at the quarter ended December compared with a rise in profit of Rs 1001.8 crore a year ago, dragged down by a precipitous rise in bad loans and severe decline in deposit base, it said in a statement.

Gross non-performing assets (NPAs) saw a sharp rise to 18.87 per cent compared with a meagre 2.10 per cent in the same period of FY19. In absolute terms, the gross NPA figure for the December quarter stands at Rs 40,709 crore compared with Rs 5,158 crore in Q3FY19, a rise of over 600 per cent. At the end of Q2FY20, the gross NPA of the bank stood at 7.39 per cent. The net NPA of the bank at the end of the December quarter stood at 5.97 per cent. In Q3FY19, the bank reported net NPA of 1.18 per cent.

Yes Bank : Reconstruction  Plan... 4
Recovering plan of Yes Bank – NEXT WEB NEWS

Its net interest income, the difference between interest earned and interest expended, fell considerably by 60 percent year-on-year to Rs 1,064.78 crore, and the sequential decline was 51.23 percent.

Accordingly, the former Chief Financial Officer and Deputy Managing Director of State Bank of India (SBI) will take over his new responsibilities once the moratorium on the stressed lender is lifted on Wednesday, a Finance Ministry notification said.

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