NewsClick

NewsClick
  • हिन्दी
  • Politics
  • Economy
  • Covid-19
  • Science
  • Culture
  • India
  • International
  • Sports
  • Articles
  • Videos
search
menu

SUBSCRIBE AND SUPPORT

image/svg+xml
  • All Articles
  • Newsclick Articles
  • All Videos
  • Newsclick Videos
  • हिन्दी
  • Politics
  • Economy
  • Science
  • Culture
  • India
  • Sports
  • International
  • Africa
  • Latin America
  • Palestine
  • Nepal
  • Pakistan
  • Sri Lanka
  • US
  • West Asia
About us
Grievance Redressal Mechanism
Newsletter
Facebook - Newsclick Twitter - Newsclick Instagram - Newsclick Youtube - Newsclick RSS - Newsclick
close menu
×
You deserve independent, critical media. Subscribe and Support
Politics
India
Economy

Exposures Towards Jet Airways and IL&FS Behind Yes Bank Crisis

In November last year, the RBI initiated probe into Yes Bank’s exposure towards IL&FS, Dewan Housing Finance Corp. Ltd (DHFL), Indiabulls Group, and Sudhir Valia-promoted entities Fortune Financial Services India Ltd and Suraksha ARC.
Newsclick Report
01 May 2019
Yes Bank

Yes Bank investors lost nearly Rs 16,316 crore market capitalisation on Tuesday, April 23, as the private bank’s shares plunged 30% to Rs 167 on the National Stock Exchange (NSE), days after the bank reported a whopping Rs 1,507 crore net loss for the March quarter (fourth quarter of financial year 2018-19). The bank posted a net profit of Rs 1,180 crore during the same period an year ago.

Since the last three quarters, Yes Bank has been posting lacklustre financial results on the grounds of massive exposure to crippled entities in infrastructure, airlines and real estate sectors. The setbacks to the Yes Bank growth story reflect the deepening crisis in the Indian banking sector fuelled by high levels of non-performing assets (NPA).

The Bank had also attracted downgradings from a set of brokerage firms - Macquarie Research has double-downgraded the Bank’s stock to ‘underperform’, foreign brokerage house Citi downgraded the stock to ‘sell’ and HSBC downgraded to‘reduce’ call.

During the March quarter, Yes Bank’s gross non-performing assets ratio more than doubled to 3.22 % from 1.28 % in the year- ago period and 2.10 % in the December quarter. The gross NPA Ratio is the ratio of total gross NPA to total advances (loans) of the bank.

Also Read: The Jet Airways Crisis Sheds A Stark Light On India’s Aviation Market

On the outset, Yes Bank’s market performance can be attributed to its massive exposures to stressed companies whose financial transactions are under probe by various state- agencies and its board’s mismanagement, as flagged by the Reserve Bank of India.

Last year, the RBI demanded the private lender’s founder Rana Kapoor to step down as Chief Executive Officer, following a spat over breaches of confidentiality and regulatory guidelines revealed in their inspections. Kapoor was replaced by Ravneet Gill in January this year.

As per the bank’s recent filings, it’s gross slippage (accumulated bad loans) stood at Rs 3,481 crore. Of that, Rs 552 crore were on account of exposure to an airlines (reportedly, the airlines in question is the recently grounded Jet Airways although the bank did not reveal this) while Rs 529 crore was because of exposure to struggling infrastructure conglomerate IL&FS.

Yes Bank has a total exposure of over Rs 2,600 crore to various special purpose vehicles of IL&FS.

In November last year, the RBI also initiated probe into Yes Bank’s exposure towards IL&FS, Dewan Housing Finance Corp. Ltd (DHFL), Indiabulls Group, and Sudhir Valia-promoted entities Fortune Financial Services India Ltd and Suraksha ARC.

Read More: Will Ravneet Gill Get Yes Bank out of the RBI's Cross-Hairs?

Get the latest reports & analysis with people's perspective on Protests, movements & deep analytical videos, discussions of the current affairs in your Telegram app. Subscribe to NewsClick's Telegram channel & get Real-Time updates on stories, as they get published on our website.
Yes Bank
Banking
Jet Airways
IL&FS
ILFS
non-performing assets
bad loans
DHFL
IL&FS Crisis
Jet Airways Debt
Related Stories
strike

Day 1 of Trade Unions-led ‘Historic’ Bharat Bandh ‘Grand Success’

pre

Soaring Steel Prices, Credit Crunch Bleed MSMEs

Unemployment Rate was 28.5% in Capital in Oct-Nov; for Women 54.7%: Delhi Govt Survey

Insecurity Clouds Govt Job Security as Number of Jobs Tanks in 5 Years

jk

Kashmir: Losses Mount as Govt Delays Payments, Alleges Trade Body KCCI

Cox & King

The Curious Case of Cox & Kings

Lakshmi Vilas Bank

What Brought Down Lakshmi Vilas Bank?

‘IL&FS Gave Loans Without Security Cover

Only 19% of IL&FS Group’s Rs 99K Crore Debt Resolved by New Board in 2 Years

FinCEN Files: US Banks Red-Flagged 44 Indian Banks for Suspicious Transactions Between 2011 and 2017

FinCEN Files: US Banks Red-Flagged 44 Indian Banks for Suspicious Transactions Between 2011 and 2017

DHFL Scam: SEBI Takes Action Against 12 DHFL Promoters for Fraudulent Transactions

DHFL Scam: SEBI Takes Action Against 12 DHFL Promoters for Fraudulent Transactions

Punjab National Bank Delayed Red Flagging Rs 3,688 Crore DHFL Loan as Fraud

Punjab National Bank Delayed Red Flagging Rs 3,688 Crore DHFL Loan as Fraud

Share on FacebookShare on TwitterShare on WhatsAppShare via EmailShare on RedditShare on KindlePrint
Share
Share on FacebookShare on TwitterShare on WhatsAppShare via EmailShare on RedditShare on KindlePrint
Share
You deserve independent, critical media. We want readers like you. Support independent, critical media. Subscribe to Newsclick.

Subscribe and Support


Latest

  • Ban on Wheat Exports 'Anti-Farmer' Move, say Punjab Farmers' Unions

    Ban on Wheat Exports 'Anti-Farmer' Move, say Punjab Farmers' Unions

  • Make PDS Universal at Least

    Activists Object to Distribution of Fortified Rice Through PDS

  • J&K

    Probe Ordered as Police Claims Civilian Killed in "Crossfire" in South Kashmir

  • Sri Lanka

    Sri Lankan Situation is Fraught with Danger

  • Load More
Newsletter
About us
Grievance Redressal Mechanism