Reasons for YES Bank crisis:
- Rising exposure to NPA
- The loan repayment capacity of the borrower is limited or very low.( IL&F S etc.)
- Governance issue – Yes bank was not functioning properly.
- Abysmal performance with lack of corporate governance
- Bank failed to implement Prompt corrective action
- Supervision and regulatory failure
Steps taken:
- Moratorium on withdrawal limits (50,000/-)
- Board has been suspended
- SBI the biggest bank Purchased 49% stock.
- Other investors also roped in.
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