Game of Money – Looks Like a Well Organized Crime
Yesterday night, Harsh tagged me in his post quoting, “I want my hardly earned money back …why did #rbi imposed 50,000 limit suddenly on withdrawal from #yesbank ..if there is no problems…..I will suicide definitely if yes bank will bankrupt……”. This was quite disturbing so I thought to lets figure it out what actually happening and what makes Yes Bank crisis?
Rana Kapoor, started his venture Morgan Credits in 1991 what makes him to build Yes Bank but there’s three other woman crime partner with him.
Morgan Credits was founded by Rana Kapoor on 30 October 1991 with 2 Lacs Authorised Capital and 2 Lacs PaidUp Capital and Roshini Kapoor appointed as Director on 02 February 2016, Raakhe Kapoor Tandon appointed as DIrector on 09 July 2004 and Radha Kapoor Khanna appointed as Director on 21 May 2004 (all these three are sisters).
Yes Capital was founded by Roshini Kapoor, Raakhe Kapoor Tandon and Radha Kapoor Khanna on 08 May 2003 with 2.5 Crores Authorised Capital/2.38 Crores PaidUp Capital.
Yes Bank was founded by Rana Kapoor and Ashok Kapur on 21 November 2003 with 800 Crores Authorised Capital/510 Crores PaidUp Capital.
The dates, appointment of three sisters as Director of Morgan Credits and founding dates of Yes Capital and Yes Bank are not a coincidence but the root of a well organized crime.
Points to be noted –
- All three sisters of Yes Capital and Morgan Credits are daughter of Rana Kapoor.
- All three sisters are also Director of other companies and most companies are common between sisters.
- Morgan Credits and Yes Capital had shares in Yes Bank.
- YES Bank’s troubles first came to light in 2017 when RBI said that its bad loans were more than the bank had divulged.
- Rana Kapoor-owned Morgan Credits pays Rs 792 crores to RNAM on 24 September 2019.
- Defaulters to whom the Yes bank had advanced funds included Jet Airways, Dewan Housing, IL&FS, Anil Ambani group, CG Power, Cox & Kings, Café Coffee Day, Essel group, Essar Power, Vardaraj Cement, Radius Developers, and Mantri Group.
- Rana Kapoor, Morgan Credits and Yes Capital sold their shares on 19 September 2019 worth 18,250 crores, holding only 0.8%
- Rana Kapoor, Morgan Credits and Yes Capital sold their remaining 0.8% shares on 19 November 2019 worth 510 crores.
- Yes Bank gambled public money in big loans.
- 2450 Crores that SBI will invest, is public money.
YES Bank depositors can’t withdraw more than Rs 50,000 for a month, but the RBI may allow YES Bank depositors to withdraw up to Rs 5 lakh in case of an ’emergency’. Depositors have deposited their own hard earned money and neither Yes Bank nor RBI would have rights to put any restrictions on it. Depositors must have freedom to deposit or withdraw, parts or whole deposits from the bank in any case and this is why we’ve banking but depositors always gets restrictions because their own hard earned money was wasted on some bad loans. So, depositors are suffering when Rana, his daughters and loan defaulters are enjoying their cash. This is not happening for the first time in India. There were already small banks who were bail out bank RBI by merging into bigger banks and remember Nirav Modi, Vijaya Mallya, and others already have similar story. The Holi is nearby and people are standing in the line struggling to withdraw their own money.
We can also blame Government for not putting the previous defaulters like Nirav Modi, Vijaya Mallya, others behind the bars. The Government also requires making health and status of the bank public to make easier to figure it our whether to invest or open bank account into it.
Note: I’ve collected all above data from different news websites.
Keeping all above in mind, let’s have a look at the company’s key events that led it to this state recorded by CNBC TV18 –
August 30, 2018: The bank gets RBI nod for Rana Kapoor to continue as MD and CEO until further notice from the central bank.
September 25, 2018: The lender’s board decides to seek RBI nod to extend Kapoor’s term until April 30, 2019. The bank’s board says that it will form a committee to search for Kapoor’s successor.
October 11, 2018: YES Bank appoints advisory firm Korn Ferry to help find a new CEO.
October 17, 2018: RBI refuses to give Rana Kapoor more time and asks the lender to find a new CEO by February 1, 2019. YES Bank says it aims to complete the recruitment process by mid-December.
November 14, 2018: Ashok Chawla resigns from YES Bank’s board. Vasant Gujarathi also steps down as an independent director.
November 20, 2018: YES Bank says that the selection process for MD and CEO is on track, and recent resignations of board members bear no impact.
November 27, 2018: Rating agency Moody’s downgrades the lender’s rating, saying the resignations from the bank’s board raise concerns over corporate governance.
November 28, 2018: Media reports say Kapoor’s investment vehicles’ transactions could be questioned by investors and regulators; YES Bank denies involvement with the fund management of these investment vehicles.
March 1, 2019: Ravneet Gill takes charge as YES Bank MD and CEO. The bank’s shares gain nearly 3 percent on the back of new appointment.
April 1, 2019: Reports emerge about the bank coming under Sebi probe over potential insider trading violations. Reports also emerge about possible revamp of the top management under the new CEO.
April 26, 2019: YES Bank posts a net loss of Rs 1,506.6 crore in the fourth quarter. The aggregate outstanding funded exposure of bank stands at Rs 2,528 crore at the end of the fiscal year, of which Rs 2,442 crore is classified as NPA.
June 3, 2019: Reports emerge that YES Bank is in discussions with private equity firms Advent International and Apax Partners to raise as much as Rs 3,000 crore.
July 18, 2019: YES Bank shares slump 19 percent after first-quarter profit plunges. The shares fall further after reports emerge about Rana Kapoor’s pledging of the entire stake in the bank.
August 23, 2019: Reports emerge about the bank being in the talks with some private equity (PE) companies to raise about Rs 9,000 crore ($1.2 billion).
September 21, 2019: Rana Kapoor sells 2.75 percent stake in YES Bank through the open market, reduces equity to 6.89 percent.
November 1, 2019: Reports of YES Bank getting a binding offer of $1.2 billion from Hong Kong’s SPGP Holdings emerge.
November 3, 2019: DBS denies reports of YES Bank acquisition after the latter claims in the exchange filing that it received strong interest from multiple foreign, as well as, domestic private equity and strategic investors.
November 14, 2019: YES Bank’s auditor BSR & Co seeks fresh audit after complaints were leveled by a whistleblower about irregularities in the bank and conflict of interests in relation to founder Rana Kapoor.
November 30, 2019: SPGP Holdings, backed by Canada-based Erwin Braich, offers a $1.2 billion deal to YES Bank.
December 17, 2019: Concerns emerge about the future of the bank with experts pointing towards merging the lender with a much-established bank. Experts point towards Kotak Mahindra Bank as the likely option.
January 13, 2020: YES Bank announced that it will not proceed with the $1.2 billion offer by Canada-based Erwin Braich. It also further scales down its fundraising plans.
March 5, 2020: The government has approved a plan for State Bank of India to form a consortium that will buy a stake in the debt-ridden private bank, reports Bloomberg.