Yes Bank is one of the well-known private banks in India. Yes Bank, which is headquartered in Mumbai, offers a wide range of banking and financial services including corporate, retail and investment banking as well as wealth management. Yes Bank was one of the first to offer online banking in 2006 and mobile banking services in 2007 in India and also took advantage of the advancement in technology to improve customer service in its early years. Yes Bank was founded by Rana Kapoor and Ashok Kapur, but it got mired in controversies after the death of Ashok Kapur. Ashok Kapur was killed in the 26/11 terror attacks. In 2020, the government through Reserve Bank of India seized control of Yes Bank and implemented a bailout plan for the troubled lender.
Yes Bank’s customer base includes individuals/retail, businesses and institutions. The bank’s retail banking customers include salaried professionals, self-employed individuals and students. Its corporate banking customers include small businesses, medium-sized businesses and large corporations. Its wealth management customers include high net-worth individuals and families.
Rana Kapoor was arrested under the provisions of money laundering charges in alleged financial irregularities of Yes Bank and DHFL. He has been in jail since March 2020.
Yes Bank share price
Yes Bank share price has been volatile owing to the ending of investors lock-in this year. On BSE, Yes Bank share price has fallen ₹4.4, or 20.4%, during January-September 2023 period. From September 2022 to September 2023, the Yes Bank share price has gained ₹1.7, or 11%, BSE data showed. The Yes Bank share price in the last 5 years, since September 2018, has crashed ₹166, or 90.6%.
Yes Bank Financial Crisis
In 2018, Yes bank was faced with a financial crisis that became a major event in the Indian banking industry. The Yes bank share price plummeted and was forced to raise capital from the government.
Yes Bank was placed under regulatory intervention by the Reserve Bank of India on 5th March, 2020. This was done after the RBI discovered that the bank was facing serious financial problems including a high level of bad loans and a lack of liquidity. An administrator, Prashant Jain, was appointed by the RBI to run Yes Bank and it was placed under a moratorium, allowing depositors to withdraw up to only ₹50,000 per account. The RBI imposed restrictions on the Bank’s lending activities to reduce its risk exposure and also appointed a fresh board of directors. This has led to a loss of confidence in the bank but the RBI’s actions were successful in stabilizing the bank’s financials.
In 2021, the RBI lifted the regulatory intervention for the bank to resume normal operations. Since then, it has worked towards rebuilding its reputation, improving its corporate governance, reducing its bad loans and improving profitability. The government of India infused capital into Yes Bank, helping stabilize its finances and also sold some of its assets to raise money which helped reduce the bank’s debt burden.
Currently, Yes Bank is in a state of transition. It is still recovering from the financial crisis but has created a strong brand name and vast customer base. Its future is uncertain as the bank faces a number of challenges but it's not impossible that it regains its position as one of the leading banks in India.
Yes Bank has recognized the importance of digital transformation to stay competitive in the market in this age of rapid technological advancements. The bank has upgraded its core banking system by implementing advanced data analytics capabilities and enhanced cybersecurity measures to ensure a seamless banking experience. It has expanded its digital channels including mobile banking applications, internet banking portals and self-service kiosks. This has allowed customers to access banking services anytime and anywhere.
Mobile banking has become the general preference and so, Yes Bank has created a user-friendly mobile application that allows customers to check account balances, transfer funds, apply for loans, pay bills and manage investments. It has also incorporated a UPI system to allow customers to make instant payments. It makes the use of artificial intelligence and data analytics to gain insight into customer behavior and preferences. Through this, the Bank is able to personalize its offering and provide recommendations to its customers, and also create personalized marketing campaigns. Furthermore, it has streamlined its lending process by implementing digital lending solutions such as applying for loans online, submitting necessary documents, and tracking the status of applications, all online and in real time.
Yes Bank has embraced the concept of open banking which involves securely sharing customer data with a third-party provider to deliver financial services. It has collaborated with fintech companies to expand its products and services. It has also introduced chatbots and virtual assistance by using AI-powered tools that answer queries, provide account information, and assist with transaction-related issues. This improves response time, provides customer support 24/7, and reduces manual intervention. The bank has also explored blockchain technology to enhance security, transparency, and efficiency in banking transparency.
The bank has collaborated with a number of fintech companies such as Acemoney, IBSFintech, Numberz, Rupeeseed, FRS Labs, Morph.ai, Signzy, and Falcon. These partnerships have helped Yes Bank stay ahead and change the fintech landscape. Yes Bank also has its own fintech accelerator program called YES Fintech in addition to these partnerships. This program offers early-stage fintech businesses the tools and guidance they need to develop and flourish.
Yes Bank financials
The bank’s financial performance has been mixed in recent years. For the quarter ended June 2023, Yes Bank's Net profit came in at Rs 342.52 crore on the revenue of Rs 6,443.2 crore.
In 2018, its profit declined due to the financial crisis but has rebounded in recent quarters and is on track to report positive results in 2023.
Its profit declined from ₹1,585 crore in 2017 to ₹52 crore in 2018. However, the bank's profit rebounded to ₹1,041 crore in 2021 and is expected to be around ₹1,200 crore in 2023. It declined from ₹3,414 crore in 2017 to ₹2,354 crore in 2018. However, the bank's NII rebounded to ₹3,025 crore in 2021 and is expected to be around ₹3,200 crore in 2023. Yes Bank's NPAs increased from 2.8% in 2017 to 8.5% in 2018. However, the bank's NPAs have declined to 4.7% in 2021 and are expected to be around 4% in 2023. As for its capital adequacy ratio, Yes Bank’s CAR declined from 14.8% in 2017 to 11.3% in 2018. However, the bank's CAR has rebounded to 14.6% in 2021 and is expected to be around 15% in 2023.
With its focus on investing in digital transformation, improving its adequacy ratio, and reducing its NPAs, Yes Bank is expected to improve its profits in the coming years, however, it will be facing a number of challenges that risk its performance. The Indian economy is facing a slowdown, the banking sector is becoming increasingly competitive and there is a major change underway in the regulatory environment in India, all factors that can slow down the Bank’s recovery from the financial crisis.
Yes Bank Limited reported earnings results for the full year ended March 31, 2023. For the full year, the company reported a net income was INR 7,358.2 million compared to INR 10,640.6 million a year ago. Basic earnings per share from continuing operations was INR 0.28 compared to INR 0.42 a year ago. Diluted earnings per share from continuing operations was INR 0.28 compared to INR 0.42 a year ago.
Frequently Asked Questions (FAQs)
- When was Yes Bank started?
Yes Bank was founded by Rana Kapoor and Ashok Kapoor in 2004
2. Who is heading Yes Bank at present?
After the financial crisis in 2018, the Reserve Bank of India took over Yes Bank and named Prashant Kumar as Managing Director and Chief Executive Officer of the bank. He has continued since then.
3. Does Yes Bank have a demat account facility?
Yes.
4. Does Yes Bank have a loan facility?
Yes.
