Yes Bank Crisis began in 2004 and was founded by Rana Kapoor and Ashok Kapoor. Non-performing assets reached an estimated 10-11% or 17,000 crore rupees as the loan book grew to 35% compared to a benchmark of 10%. The crisis was caused by high non-performing assets of 10-11% against a benchmark of 4%, loan book growth of 35% instead of 10%, and loans given to already bankrupt companies that could not repay. A capital restructuring plan was approved where SBI would acquire a 49% stake for Rs. 10 per share to stabilize the bank.
Yes Bank Crisis began in 2004 and was founded by Rana Kapoor and Ashok Kapoor. Non-performing assets reached an estimated 10-11% or 17,000 crore rupees as the loan book grew to 35% compared to a benchmark of 10%. The crisis was caused by high non-performing assets of 10-11% against a benchmark of 4%, loan book growth of 35% instead of 10%, and loans given to already bankrupt companies that could not repay. A capital restructuring plan was approved where SBI would acquire a 49% stake for Rs. 10 per share to stabilize the bank.
Yes Bank Crisis began in 2004 and was founded by Rana Kapoor and Ashok Kapoor. Non-performing assets reached an estimated 10-11% or 17,000 crore rupees as the loan book grew to 35% compared to a benchmark of 10%. The crisis was caused by high non-performing assets of 10-11% against a benchmark of 4%, loan book growth of 35% instead of 10%, and loans given to already bankrupt companies that could not repay. A capital restructuring plan was approved where SBI would acquire a 49% stake for Rs. 10 per share to stabilize the bank.
Yes Bank Crisis began in 2004 and was founded by Rana Kapoor and Ashok Kapoor. Non-performing assets reached an estimated 10-11% or 17,000 crore rupees as the loan book grew to 35% compared to a benchmark of 10%. The crisis was caused by high non-performing assets of 10-11% against a benchmark of 4%, loan book growth of 35% instead of 10%, and loans given to already bankrupt companies that could not repay. A capital restructuring plan was approved where SBI would acquire a 49% stake for Rs. 10 per share to stabilize the bank.
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
You are on page 1of 5
Yes Bank Crisis
History •Started its operations in 2004 •Founder- Rana Kapoor, Ashok Kapoor •Deposits 2 Lakh cr, Assets- 3.5 L cr
•NPA are estimated about 10-11% i.e. 17000cr
•Its loan book rose to 35% where as it should was around 10% overall bank credit. Reason of crisis Its NPA was about 10-11% whereas benchmark rate 4% Loan book grew about 4% Loan book 2,24,505 cr, deposits were 2,09,497 cr. Loans given by Rana Kapoor to those companies which were already bankrupt and couldn’t repay its loan amount. Failure in raising capital led to downgrading of Yes bank by credit rating Capital Restructuring SBI to be minor shareholder of 49%. Fv=10 (premium of 8) 26% of its holding cannot be diluted for next 3 years ICICI & HDFC bank to invest 1000cr in yes bank AXIS bank to invest 600cr Kotak Mahindra Bank to invest 500cr Main stakeholders in yes bank Depositors Investors in yes bank (11%) Investors in SBI (49%) Instituional Investors (60%)