INSUBCONTINENT EXCLUSIVE:
On March 5, YES Bank was put under a moratorium by the RBI, the withdrawals were capped at Rs 50,000 and its board was superseded in a move
to arrest its further slide as it desperately looked for investors.
Even as the RBI was coming up with a rescue plan, its co-founder, Rana
Kapoor, was being investigated by the Enforcement Directorate for alleged money laundering
In the wee hours of Sunday, the man who catapulted YES to the echelons of success in a relatively short span of time, was arrested with the
scope of investigation extending to his family members as well.
According to a PTI report, the investigating agency is probing the source of
funds which were used by the family members of Rana Kapoor to acquire assets in London
The report added that under investigation are investments over Rs 2,000 crore, 44 expensive paintings and a dozen alleged shell firms
Rana Kapoor sold almost all his stake in YES Bank in November last year but for 900 shares
This came after the YES bank co-founder had boastfully declared that he would never sell his share in YES bank and that "diamonds are
forever".
The crisis began to unfold after the RBI noticed under-reporting of NPAs by the bank
The banking regulator cut short Rana Kapoor's tenure to January 31, 2019.
Rana Kapoor wanted YES Bank to achieve success like HDFC Bank
and Kotak Mahindra Bank in the private lending space
Rana Kapoor's aggressive style of leadership meant that if any corporate or fledgling business wanted a loan, YES was the answer to their
But it all came apart after the RBI initiated its Asset Quality Review (AQR) in 2015, the RBI judged gross NPAs at Rs 8,373.8 crore for Yes
Bank for the fiscal year ended 2017 against the declared gross NPAs of Rs 2,018 crore, thereby reporting a divergence of Rs 6,355 crore.
The
crisis in India's shadow banking space starting with the unraveling of IL-FS and then extending to DHFL meant that the dream run of YES
Bank came to an abrupt end
The bank was desperately searching for capital even as the new CEO Ravneet Gill, who was roped in from Deutsche Bank, was optimistic of the
Rana Kapoor was one of the fastest self-made billionaires
His tenure cut short to January 31, 2019 even as the private lender had asked for a three-year extension
Poor corporate governance standards and divergence in NPA reporting brought the curtains down on one of India's most promising banking
