YES BANK

Presented By:
K R Shivani – 19MBAR0498
Anil Kumar Reddy – 19MBAR0256
Nuthan B R – 19MBAR0110
Rohit Sarkar– 19MBAR0094
Almaz Pasha HS – 19MBAR0255
An Analysis Of Profit/Loss Of Yes Bank:

The reasons for loss 5,000 crore in the year 2020 :

 Increase of NPA of 18.87%.
 Inability of the bank to raise capital to address
potential loan losses.
 Lack of governance standards.
 Lack of investment and overflow of liquidity.
 The Government of India placed Yes Bank Ltd.
under moratorium and capped withdrawals for a
month.
 Liquidity position , KYC & Anti- Money
laundering of YES Bank
Liquidity Position:
 The share price of the yes bank was 400 rupees in 2018 which is now
standing at just 16.60 as of 6 March 2020.
 The financial condition Deteriorated due to its inability to raise
capital to address potential loan losses. The declining financial
position of the bank can be easily understood by the declining share
price

KYC and AML:

 Yes Bank was penalized by RBI for violating KYC Norms during July 2013
 The total fine RBI imposed on Yes Bank for violations of regulatory instructions (in terms of KYC and AML)
is 2 crore
 It revealed when RBI carried out study of book of accounts and compliance systems of banks, they dint not
adhere to KYC rules, including some cash related transactions, sales of gold coins, import of gold coins on
consignment basis.
 In recent years, Yes Bank was not imposed with any penalty regarding KYC and AML rules.
 Non Performing Asset (NPA) and Fraudulent
Issues
Non Performing Asset (NPA):
YES Bank reported a net loss of Rs 18,564.24 crore for the December quarter (Q3FY20), as against a net profit of Rs
1,000.57 crore in the corresponding period of FY19.
The gross NPA ratio came in at 18.87% versus 2.10% during the corresponding period last year (2019). It’s net NPA
ratio was at 5.97%.
So, as the gross NPA was at 18.87% means the bank’s asset quality is in very poor shape and the loans were not
recovered in the 90 days period.

Fraudulent Issues:
In 2017 reserve bank notice that yes bank has more number of NPA and was hiding the real NPA There was a
difference of 3000 crores between the actual figure in the fake figure
Yes Bank was aggressively giving loans at high interest rate and was giving loans to people or companies ( stressed
companies) which had low chance of repaying them
On 5 May 2020 our PE declared and memorandum and placed and restriction for the deposits of his bank that they
can only draw 50,000 per month except emergencies to avoid bank run