On 17 Sep 2018 Reserve Bank of India (RBI) asked Yes Bank Ltd to end Rana Kapoor’s tenure as managing director and chief executive on 31 January 2019 despite shareholders seeking to extend his term for three more years. RBI also asked Yes Bank to search for a new MD & CEO.
Yes Bank has demonstrated a track record of consistent delivery of business & financial outcomes over the last 14 years across all critical parameters such as capital adequacy, credit risk, profitability, operating efficiency, growth, etc. The following table summarizes the Bank’s key performance indicators:
| Particulars | Small Bank Phase (FY06 to FY10) | Medium Bank Phase (FY11 to FY15) | Large Bank Phase (FY16 to FY18) |
| Advances CAGR | 96.3% | 27.8% | 39.1% |
| Deposits CAGR | 109.6% | 27.7% | 30.1% |
| PAT CAGR | 71.4% | 33.2% | 28.2% |
| RoE # | 18.2% | 22.6% | 19.7% |
| Human Capital | 3,034 | 10,810 | 20,000+* |
* As on date; # simple average RoE
Yes Bank has consistently demonstrated a track record of raising and accreting capital across various instruments and cycles, with a Capital Funds base of ~ Rs. 50,000 Crores (~$6.9Bn), having started with a Capital Funds base of Rs. 217 Crores (~$30Mn) in 2004. This includes Rs. 3,042 Crores (~$420Mn) of Basel III compliant Tier II bonds recently raised by the Bank in September 2018.
Yes Bank ratings have been stable with Moody reaffirming Yes Bank rating as Baa3(Stable Outlook) as recent as 20 Sep 2018. In Jul 2018 CARE had upgraded Yes Bank to AAA.
Yes Bank is led by experienced, top management professionals guided by the eminent Board of Directors. The strong foundation laid over the years and a well-experienced second-line management should help sustain the Yes Bank.
In 2003, Infosys stocks fell by 26% on a single day when Narayan Murthy announced the results reducing the future guidance. Soon Infosys was trading well above the high before the serious correction set in. In 2013 Apollo Tyres fell by 40% when they announced they would buy Cooper Tire in the US. The stock price fell but eventually went up.
There are very high chances that similar story might repeat at YES BANK and stock should fill the gap created. On Sep 26th, Global Brokerages including Macquire, JP Morgan, stuck to their bullish stance on Yes Bank and see over 80% upside
MD & CEO of Yes Bank, Rana Kapoor also tweeted today that he will hold his promoter shares, as diamonds are forever
.@RanaKapoor_ Tweets: Will Never Ever Sell My @YESBANK Shares Even After Demitting Office As MD & CEO.
*Continue To Remain Fully Committed To Interests Of Bank And All Stakeholders.
*I Will Be Fully Guided By The Board Of Directors Of YES Bank & RBI pic.twitter.com/9ycqRTJ78Q
— BTVI Live (@BTVI) September 28, 2018
