Banking sector boost up the real economy for the nation. Bank is the most trustworthy organization in the world in terms of deposits. But in some other country keeping cash in bank you need to pay interest. But in India is just opposite bank pay interest to depositors.
Well we all know opening an account in private sector bank it means they will be taking care of everything. Few executives gives home services to some HNI’s. Hence people use to park money ignoring PSU Bank.
Though Yes Bank was founded in 2004 and due to its strong management bank touching peaks and the shares touching sky. Everything was going good for bank. But the bad days starts from 2019 when their giveaway loans converting into NPAs. Due to false update of quarter results by Rana Kapoor the chairman and CEO of Yes Bank called off from Yesbank and appointed new CEO Ravneet Gill who was known for a veteran in Corporate Banking HSBC bank was his last working job profile.
Investor greets Ravneet Gill and share price was rising now the climax starts for yesbank. When the time came to declare the 2019 quarter one results it shocked investor with a huge Q1 NPA of Rs.1506. Where shares fell from its peak 50% which is a highest one day fall for any banking sector during that time.
Earlier it fell deep when Rana Kapoor resign from CEO then the share was Rs.400 and it fell almost 30% around it was hovering near Rs.280. Then the news media and the Rating agencies started their negative views against yes bank in which investor uninterruptedly selling their shares in an open market to minimise the loss.
In 2019 to 2020 it will be a lesson that investing in Stock Market is subject to a higher risk if you misjudge Corporates and putting whole money into one shares there is a more chance for capital depreciation if you comes infront of bad promoters and the fundamental of the company is weak or bad.
Well with a hope after falling 50% still people think it may rise after q1. Then comes Q2 results which confused all with a loss of Rs.600 provisioning their profit. Yes Bank Shares flew high that Ravneet Gill is overcoming with NPA numbers but Yesbank is a hidden ocean of NPAs. One after one bad corporates shut down their business due to loss in which recovery of loan becomes tough. In between after Q2 results shares fell almost 80% from its peak was trading around Rs.50 by Jan 2020.
Now the time came for Q3 results where yesbank intentionally delays to publish the result which makes investor more panic what is going on for not disclosing the quarter numbers. They took time to declare on February 2020 and in the mean time they assured investors that fund infusion can take place and the bank is on discussion.
Nothing happence at last RBI declare Moratorium to bank and declared that for certain times Bank Customer can withdraw money there should be a limit of Rs.50000 per day. Then to avoid panic among the depositors RBI asked SBI to provide some fund to bank to run in which SBI becomes a new promoter for temporary with fund infusion of 11000 crore. Seeing these top private bank joined and contribute as per their risk capacity.
Well Now Yes bank share was trading near Rs22 fell down again from Rs87 which run fast recently with the SBI backing Yesbank news. Do you think investing and not scrutinize your shares at a regular basis would give you profit. Answer is no you need to check and rebalance your shares holding portfolio at a regular basis. Because its your hard earned money and you dont want to loose for such bad Promoters and for bad management companies.
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