Yes Bank is an Indian bank headquartered in

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...

, India and was founded by

Rana Kapoor Rana Kapoor (born 9 September 1957) is an Indian former banker who was the managing director and CEO of Yes Bank, an Indian private sector bank. Following a career in financial institutions, he co-founded Yes Bank in 2003, with its registered o ...

and Ashok Kapoor in 2004. It offers wide range of differentiated products for corporate and retail customers through retail banking and

asset management Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...

services. 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 The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...

(RBI) took control of it. RBI later reconstructed the board and named Prashant Kumar, former chief financial officer and deputy managing director of

State Bank of India State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest bank in the world by total assets and ranked 221st in the ''Fortune ...

, as MD & CEO of Yes Bank, along with Sunil Mehta, former non-executive chairman of

Punjab National Bank Punjab National Bank (abbreviated as PNB) is an Indian public sector bank headquartered in Delhi. The bank was founded in May 1894 and is the second largest government-owned bank in India, both in terms of its business volumes and its network ...

, as Yes Bank's non-executive chairman. The bank's management under the new leadership of Kumar, immediately repositioned itself and dealt with all internal and market related challenges to restore customer and depositor confidence. Under the coordinated efforts of the new board and management, Mehta assured shareholders of speedy recovery, even as the

(RBI),

(SBI),

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ICICI Bank ICICI Bank Limited is an Indian Private bank. It is headquartered at Mumbai. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiari ...

Axis Bank Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It sells financial services to large and mid-size companies, SMEs and retail businesses. As ...

and other banks lent it support through a historic Yes Bank Reconstruction Scheme 2020. In July 2020, Yes Bank Ltd closed their follow-on public offer (FPO) with 95% subscription, driven by institutional investors. As of 28 July 2020, Yes Bank is an associate of

which has a 30% stake in the company.

Shareholding Pattern - Board Details

As of March 2018, as per its annual shareholders' report, the three largest shareholders of Yes Bank Ltd. were foreign portfolio investors (43%), insurance companies (14%), and Mutual Funds including UTI (10%). Smaller (less than 5%) shareholdings were owned by its three promoters ana 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%). In March 2020,

invested in Yes Bank amid a financial crisis and holds 30% stake in the company as of 28 July 2020.

Digital and Tech

In October 2017, the bank launched a

digital wallet A digital wallet, also known as an e-wallet, is an electronic device, online service, or software program that allows one party to make electronic transactions with another party bartering digital currency units for goods and services. This can ...

known as Yes Pay, integrating with

BHIM BHIM (Bharat Interface for Money) is an Indian mobile payment mobile app, app developed by the National Payments Corporation of India, National Payments Corporation of India (NPCI), based on the Unified Payments Interface, Unified Payments Int ...

and UPI. On 3 November 2017, Yes Bank signed a MoU with the

government A government is the system or group of people governing an organized community, generally a state. In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...

to provide financing for food processing projects.

Business

Yes Bank has interests in Retail, MSME and

Corporate banking Wholesale banking is the provision of services by banks to larger customers or organizations such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, ...

. It has three subsidiaries – YES Securities (India) Limited, YES Trustee Limited and YES Asset Management (India) Limited. As of September 2018, Yes Bank had taken syndicated loans from eight large international entities including ADB,

OPIC The Overseas Private Investment Corporation (OPIC) was the United States Government's Development finance institution until it merged with the Development Credit Authority (DCA) of the United States Agency for International Development (USAI ...

European investment bank The European Investment Bank (EIB) is the European Union's investment bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solutions ...

, banks in

Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the nort ...

and

Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...

for amounts ranging from US$30 million to US$410 million. It also partnered with the US government based OPIC and with Wells Fargo to support women entrepreneurs. Yes Bank provides (UPI)

Unified Payments Interface Unified Payments Interface (UPI) is an instant real-time payment system developed by National Payments Corporation of India (NPCI). The interface facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions. It is used ...

facility to allow customers to easily and securely perform various financial transactions from their mobile devices via third-party app providers like PhonePe and Yuva Pay. According to the data shared by NPCI (National Payments Corporation of India), Yes Bank processed 25.94 million transactions amounting to INR 14811.73 crores through its own UPI app in July 2021. Yes Bank acquired over 24.19% stake in Dish TV, India's largest direct-to-home (DTH) company in terms of subscribers, on 30 May 2020.

Moratorium

On 5 March 2020, the

(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 reasons for the moratorium. During this period, Yes Bank customers could withdraw only up to from their accounts for the following one month, except in certain situations like medical treatment, emergencies, higher education costs and obligatory expenses for ceremonies such as weddings (subject to RBI's approval). RBI governor

Shaktikanta Das Shaktikanta Das (born 26 February 1957) is serving as the current & 25th List of Governors of Reserve Bank of India, governor of the Reserve Bank of India (RBI). He was earlier a member of the Fifteenth Finance Commission, FifteenthFinance Commi ...

stated that the matter would be resolved swiftly;

Finance Minister A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", " ...

Nirmala Sitharaman Nirmala Sitharaman (born 18 August 1959) is an Indian economist and politician serving as the Minister of Finance and Corporate Affairs of India since 2019. She is a member of the Rajya Sabha, upper house of the Indian Parliament, since 2014. ...

announced a proposed turnaround plan under which the

would take a 49% stake in Yes Bank and introduce a new board. The moratorium disrupted multiple e-commerce services whose users were struggling to make online transactions or use popular payment services like UPI. Almost two weeks later (12 days), the bank came out of the moratorium and resumed full-fledged banking operations from 18 March 2020. This came after a consortium of eight public and private banks, led by State Bank of India, agreed to infuse capital into Yes Bank. And barely nine months after the imposition of the moratorium, Yes Bank was on the road to recovery. The bank's operating profits and recoveries were sufficient to provide for credit costs and it would not need to consume capital for further operations. On 13 March 2020, the Union Cabinet approved the reconstruction scheme for Yes Bank, stating that within three days of the notification of the scheme, the moratorium would be lifted. During this reconstruction, seven investors infused in Yes bank and Prashant Kumar was proposed as new CEO of the bank. These investors include

Kotak Mahindra Bank Kotak may refer to: * Kotak (band), an Indonesian rock band * Kotak (surname), surname and people who bear it * Kotak Mahindra Bank, an Indian financial service firm * Kotak Securities, subsidiary of Kotak Mahindra Bank * Kotak, Iran (disambiguation ...

, Rakesh Jhunjhunwala,

Radhakishan Damani Radhakishan Shivkishan Damani is an Indian billionaire investor, business magnate and the founder of Avenue Supermarts Limited. He also manages his portfolio through his Investment firm, Bright Star Investments Limited. On 19 August 2021, he ...

and

Azim Premji Azim Hashim Premji (born 24 July 1945) is an Indian businessman, investor, engineer, and philanthropist, who was the chairman of Wipro Limited. Premji remains a non-executive member of the board and founder chairman. He is informally known as ...

trust. On 6 March 2020, ICRA downgraded the

rating A rating is an evaluation or assessment of something, in terms of quality, quantity, or some combination of both. Rating or ratings may also refer to: Business and economics * Credit rating, estimating the credit worthiness of an individual, c ...

of Yes Bank's in core bonds to a "D" rating, while

Moody's Moody's Investors Service, often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name. Moody's Investors Service provides international ...

downgraded them to "Caa3". On 8 March 2020, Yes Bank founder Rana Kapoor was arrested by the

Enforcement Directorate The Directorate of Enforcement (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance, Gover ...

under charges of

money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...

. In April 2021, India's market regulator

SEBI The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...

( Securities and Exchange Board of India) proposed a fine of on Yes Bank Ltd., stating it had fraudulently sold certain risky bonds without the necessary warnings and risk assessments. In May 2021, the Securities Appellate Tribunal (SAT) imposed an interim stay on SEBI's order.

Listings

Yes Bank has equities listed on the

Bombay Stock Exchange BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange. It is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange in ...

and the

National Stock Exchange of India National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, Mah ...

and bonds listed on the

London stock exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...

. Yes Bank was listed in the stock exchanges of India after its

IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

in June 2005 at a face value of and an issue price of .

Financials

Reconstruction

Under the new management, Yes Bank has managed to overhaul its risk and governance frameworks while saving itself from reputational risks. The liquidity profile of the bank is well above the required regulatory norms. In June 2021, the board approved INR 10,000 crore worth of fundraising by issuance of debt securities. In financial year 2020–21, Yes Bank saw a marked rise in deposits at 55% and operating profits at 42% year on year. The recapitalization drive at the bank generated ₹15,000 crore via follow-on public offers in July 2020. Yes Bank continues to focus on digital payments, concentrating on its market share in UPI and IMPS transactions while it plans to disburse ₹10,000 crore in retail and

MSME Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...

loans in Q3 of FY21. In September 2016, Yes Bank scrapped its proposed $1 billion share sale due to market conditions. The company subsequently attempted to relaunch its failed capital raising exercise after appointing a new set of bankers.

Ratings Upgrade

In September 2020, ICRA upgraded its ratings on securities issued by Yes Bank Ltd, factoring in various positive developments in the bank's financial profile. Infrastructure bonds and Basel II compliant lower tier II bonds were raised to ‘BBB’ from ‘BB+’. Basel III compliant tier II bonds were upgraded to ‘BBB-’ from ‘BB’. Basel II compliant tier I bonds and upper tier II bonds were upgraded to ‘BB’ from a default rating previously. In August 2020, Moody's too had raised Yes Bank's long term issuer rating by a notch to B3 from Caa1. In November 2020, CARE Ratings revised its rating on the YES Bank's infrastructure bonds to 'CARE BBB' from the previous 'CARE B'. It also revised its outlook to 'Stable' from the previous ‘Under credit watch with developing implications’ on the above-mentioned instruments. Yes Bank's Upper Tier II Bonds and Perpetual Bonds (Basel II) received a revised rating of 'CARE BB+' from previous 'CARE D'.

References

External links

Official Website
{{Authority control Banks based in Mumbai Banks established in 2003 2005 initial public offerings Yes Bank Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange