InvestorQ : What can be the implications of the huge divergence reported by Yes Bank?
Neelam Naik made post

What can be the implications of the huge divergence reported by Yes Bank?

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Priyanka N answered.
2 years ago
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The divergence in this case refers to the gap between the NPAs reported by Yes Bank and the NPAs identified as per the RBI definition. While there is bound to be some amount of divergence between the two, the limit cannot be too large. In the case of Yes Bank, the divergence for the September quarter was nearly Rs.3277 crore. That clearly implies that Yes Bank has still not been too transparent about its NPA policy and continue to under-report NPAs.

In the last few weeks, the stock has bounced back but this news is going to again raise serious questions about the sustainability of the business model that the bank has been pursuing. This news should typically take the bank stock lower from current levels.

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Anamika Sodhani answered.
2 years ago
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    Yes Bank founder Rana Kapoor virtually walks out of Yes Bank with the total holding just 900 shares that sum up to less than Rs 60,000. In the year of founding, 2003 Yes Bank by Kapoor, with his brother in law Ashok Kapur both had the holding 26 % in the bank. However, the percentage of holdings is almost zero, after the holding company, Yes Capital (India) Pvt Ltd sold 9approx.) 2.04 crore shares worth Rs 142.75 crore.


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