Before we go through the Latest Yes Bank News, let’s just look at how it performed over the Years and How the yes Bank Share Value just dropped like never Before. Yes Bank is India’s 4th largest private sector bank. It offers a wide range of banking & financial products to corporate & to its retail customers; it is involved in Retail Banking & Assets of Management Business.
Products that are provided by Yes Bank to their customers are Credit cards, Consumer banking, corporate banking, finance & insurance, mortgage loans, wealth management, investment banking & private banking.
Rana Kapoor & Ashok Kapur are the founders of YES BANK & it was established in the year 2004. The Headquarters of YES BANK is in Mumbai Maharashtra INDIA.
The total revenue of Yes Bank in 2018 is Rs.254.91 Billion ($ 3.6 billion) Operating income is Rs. 619..4 billion ($ 8.7 billion) 2018 and this led the Yes bank Shares to Get New highs. Net worth income came down in the year 2019 – Rs. 15.0664 billion ($ 210 million) & The total assets of YES BANK that has been up by Rs. 3.014 trillion ($ 42 billion)
Yes Bank Shares Performance over the years and in 2020
As per the Annual report for March 2018, the 3 largest Yes Bank shareholders are Foreign Portfolio investors with – 43%, Insurance Company with – 14% & including mutual funds & UTI with – 10%.
Less than 5% of Yes Bank share was owned by 3 promoters – Rana Kapoor by (4%), Yes Capital India Pvt. Ltd by (3%) & (3%) by Morgan Credits Pvt Ltd. Others Investors included Madhu Kapur – (8%), Mags Finvest Pvt Ltd – (2%), & LIC India under various schemes – (10%).
Yes Bank operates 3 distinct entities – Yes Bank, Yes Capital & Yes Assets Management.
Who did the Yes Bank Merger within 2020?
On 13th of March 2020, the RBI unveiled the reconstruction indicating possibilities of SBI acquiring 49% of the stake from Yes Bank which was under a moratorium for 30 days. (SBI – State Bank of India) which is set to buy 49% of the Yes Bank Shares which is a part of reconstructing plan by (RBI – Reserve Bank of India). The potential investors who have approached to form a consortium to pick the stake in private sector lender.
SBI will initially invest in Rs, 2,450 Crore & can later be increased by RS. 10,000 Crore depending on due, final valuation, the interest of investors, & capital requirement. Currently, there are Rs. 255 Crore shares outstanding & as per the draft scheme, & can take up to 49%. The only requirement that there is a lock-in of 26% for 3 years, so it is set as a boundary. When 26% for 3 years is a sort of obligation anytime above 49% depends on what interest from other investors, total capital required. If SBI goes solo & picks 49% stake then immediate requirement investment is Rs. 2,450 Crore.
As per the latest Yes Bank News, Rajnish Kumar the Chairman of SBI- State Bank of India said they have time till 16th March 2020 to respond to RBI – Reserve Bank of India on Yes Bank Merger draft scheme.
Addressing press conference Kumar said mentioning 3 points to keep in mind that whatever or whomever the co-investors be there are 2-3 points to be known they are; what are the RBI guidelines? Anybody wants to go above 5% have to make fit & proper criteria so there are certain regulatory norms when comes to the investment in the financial sector, particularly banks.
On a timeline of 30 – days the SBI Chairman said that we will work 24×7 whatever is within our capability will try to a resolution plan approved & implemented before the timeline set by RBI on the Yes Bank Shares or any other Matters to save Yes Bank from Crisis.