es Bank

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Yes Bank Limited

Type Public

Traded as BSE: 532648
NSE: YESBANK

ISIN INE528G01035

Industry Banking, Financial services[1]

Founded 2004; 17 years ago

Founder Rana Kapoor

Ashok Kapur[2]

Headquarters Mumbai, Maharashtra, India

Key people  Sunil Mehta

(Chairman)
 Prashant Kumar
(MD & CEO)

Products  Credit cards

 Consumer banking
 Corporate banking
 Finance and insurance
 Mortgage loans
 Private banking
  Wealth management
 Investment banking

 ₹10,769 crore (US$1.4 billion) (2021)
Revenue

Operating income  ₹4,977 crore (US$660 million)[3] (2021)

Net income  ₹−3,462 crore (US$−460 million)[3] (2021)

 ₹273,543 crore (US$36 billion) (2021)
Total assets
 ₹19,184.87 crore (US$2.5 billion)[4] (2020)
Total equity

Number of employees 22375(2021)[5]

Capital ratio 17.0% [5]

Website www.yesbank.in

Yes Bank Limited is an Indian private sector bank headquartered in Mumbai,

India[6] and was founded by Rana Kapoor and Ashok Kapur in 2004.[7] It offers wide
range of banking and financial products for corporate and retail customers through retail
banking and asset management services.[8] 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.[9] Yes Bank
is an associate of State Bank of India which has a 30% stake in the company as of 28
July 2020.[10][11][needs update]

Contents

 1Business
 2Listings
 3Shareholding pattern
 4Recent developments
o 4.12020 moratorium
 5See also
 6References
 7External links

Business[edit]
Yes Bank has interests in Retail, MSME and corporate banking. It has three
subsidiaries – YES Securities (India) Limited, YES Trustee Limited and YES Asset
Management (India) Limited.[12]
As of September 2018, Yes Bank had taken syndicated loans from eight large
international entities including ADB, OPIC, European investment bank, banks
in Taiwan and Japan for amounts ranging from US$30 million to US$410 million, which
it in turn lend to small and medium scale enterprises as well as large corporates. It has
also both taken as well as given short term loans to a number of retail and corporate
banks in Taiwan, Japan, the United States, and Europe.[13][14] It has partnered with the US
government based OPIC and with Wells Fargo to support women entrepreneurs.[15]
Yes Bank provides Unified Payments Interface (UPI) services for a number of major
companies, such as Airtel, Cleartrip, RedBus, and PhonePe among others. In January
2020, it was responsible for handling 514 million UPI transactions out of the 1.31 billion
made that month.[16] Yes bank has acquired over 24 percent of stake in dish TV India on
30 May 2020.[citation needed]

Listings[edit]
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.
[17]

Shareholding pattern[edit]
As of March 2018, as per its annual shareholder's report, the three largest shareholders
of Yes Bank limited were foreign portfolio investors (43%), insurance companies (14%),
and mutual funds including UTI (10%). [18][19]
Smaller (less than 5%) shareholdings were owned by its three promoters [Rana Kapoor
(4%), Yes Capital (India) Pvt. Ltd. (3%), and Morgan Credits Pvt. Ltd. (3%)] and other
investors including Madhu Kapur (8%), Mags Finvest Pvt. Ltd. (2%), and LIC
India under its various schemes (10%).[20]
On March 2020, State Bank of India invested ₹7,250 crore (US$960 million) in the bank
amid financial crisis and holds 30% stake in the company as of 28 July 2020. [21][22][10]

Recent developments[edit]
In September 2016, Yes Bank scrapped its proposed $1 billion share sale due to market
conditions.[23][24] The company subsequently attempted to relaunch its failed capital raising
exercise after appointing a new set of bankers.[25]
In October 2017, the bank launched a digital wallet known as Yes Pay, integrating
with BHIM and UPI.[26] On 3 November 2017, Yes Bank signed a MoU with
the government to provide ₹1,000 crore (equivalent to ₹12 billion or US$160 million in
2020) financing for food processing projects. [27]
2020 moratorium[edit]
On 5 March 2020, the Reserve Bank of India (RBI) announced that, in the interest of its
customers and depositors, it would suspend and supersede Yes Bank's board and
impose a 30-day moratorium on its operations. The RBI cited Yes Bank's failures to
raise new funding to cover its non-performing assets, inaccurate statements of
confidence in its ability to receive new funding, and its underreporting of its non-
performing assets, among other factors, as the impetus for this moratorium. Customers
were limited from withdrawing more than ₹50,000 (US$660) from their accounts, except
in certain exceptional circumstances (such as to cover medical care, emergencies,
higher education, and "obligatory expenses" for ceremonies such as weddings). RBI
governor Shaktikanta Das stated that the matter would be resolved "swiftly"; Finance
Minister Nirmala Sitharaman announced a proposed turnaround plan, under which
the State Bank of India would take a 49% stake in Yes Bank and introduce a new board.
[28][29][30][31]

On 6 March 2020, ICRA downgraded the rating of Yes Bank's ₹52,600

crore (US$7.0 billion) in core bonds to a "D" rating, while Moody's downgraded them to
"Caa3".[32][33] On 8 March 2020, Yes Bank founder Rana Kapoor was arrested by
the Enforcement Directorate under charges of money laundering.[34]
The moratorium caused major disruptions to e-commerce in India, due to a number of
prominent services and online stores having used Yes Bank as its payment provider for
UPI. Some services using Yes Bank in tandem with other payment providers have seen
fewer disruptions.[35]
On 13 March 2020, the Union Cabinet approved the reconstruction scheme for Yes
Bank and that within three days of the notification of the scheme the moratorium would
be lifted.[36] During this reconstruction, seven investors infused ₹12,000
crore (US$1.6 billion) in Yes bank and Prashant Kumar was proposed as new CEO of
the bank. These investors include State Bank of India, ICICI Bank, HDFC Bank, Axis
Bank, Kotak Mahindra Bank, Rakesh Jhunjhunwala, Radhakishan Damani and Azim
Premji trust.[37]
In April 2021, Yes Bank was fined ₹25 crore (US$3.3 million) by SEBI for fraudulently
selling risky bonds without the necessary warnings and risk assessments. [38] The
Securities Appellate Tribunal (SAT) imposed an interim stay on SEBI's order. [39]

See also[edit]

 Banks portal

 Banking in India
 List of banks in India
 Reserve Bank of India
 Indian Financial System Code
 List of largest banks
 List of companies of India
 Make in India

References