It was the darling of investors not too long ago. But today, Yes Bank finds itself stuck in a strict no-go zone following yesterday’s RBI moratorium.

Yes Bank emerged as one of the top five private lenders in the country over the past 10 years, riding on heavy bets made by both foreign and domestic investors. But in a short span of just 17 months, the shares of Yes Bank have fallen from its lifetime high of Rs 404 in August, 2018 to a low of Rs 16.60 today at market closing.

Here’s a brief timeline of how the stock, touted by founder Rana Kapoor as a ‘diamond’, turned to dust, all in a matter of just over a year.

* September 19, 2018: RBI refuses to give Yes Bank CEO Rana Kapoor an extension to his term. The apex bank asks Kapoor to step down by end of January 2019.

* November 27: Rating agency Moody’s cuts bank’s foreign currency issuer rating; changes outlook to ‘negative’ from ‘stable’ citing concerns over corporate governance.

* January 24, 2019: Yes Bank hires the head of Deutsche Bank India, Ravneet Gill, as its new CEO.

* February 13: Yes Bank says RBI observed no divergences from RBI norms in the bank’s asset classification and provisioning.

* April 8: Yes Bank says it will consider raising funds by issuing shares and debt securities.

* April 26: Rising levels of bad loans trigger Yes Bank’s first-ever quarterly loss; stock tanks 30% on next trading day

* May 14: RBI appoints former central bank Deputy Governor R. Gandhi as additional director to Yes Bank’s board – a rare move signalling an increased level of scrutiny on the lender

* July 17: Yes Bank reports 91% drop in first-quarter profit, as provisions surge and asset quality deteriorates sharply; gross bad loan ratio stood at 5.01%

* September 10: Yes Bank CEO Gill says lender is close to securing a deal to sell a minority stake to a global technology company to help boost its capital

* October 3: CEO Gill says bank is in talks with private equity firms, strategic investors and family offices to raise additional capital

* October 31: Yes Bank gets binding investment offer of $1.2 billion from global investor, sends stock 39% higher

* November 1: Yes Bank reports bigger-than-expected loss for the second quarter, as bad loan ratio deteriorates to 7.39% and provisions swell to 13.36 billion rupees

* November 29: Yes Bank says it aims to raise up to $2 billion in a massive issue of new shares to institutional investors and family offices; says it is in talks to sell shares worth $1.2 billion to Canadian investor Erwin Singh Braich and Hong Kong-based SPGP Holdings, which he backs

*January 10, 2020: Yes Bank rejects Braich’s investment, says will launch a $1.4 billion share sale, after a board member’s resignation casts more doubt on the lender’s future

* February 12: The lender says it will delay disclosing its October-December earnings by at least a month, and that it was in talks with potential investors for a cash infusion

* February 12: Bank says it received non-binding expressions of interest from JC Flowers, Tilden Park Capital Management, OHA (UK) and Silver Point Capital.

*March 5: India places Yes Bank under moratorium, with RBI taking over from its board for 30 days and imposing limits on withdrawals to protect depositors

(Inputs from Reuters)





Source link