- In March, 2020 eight financial intermediaries invested ₹10,000 crore in Yes Bank for 79.68% stake
- It could not be ascertained at what price these financial institutes sold their stake
Federal Bank, IDFC First Bank and Kotak Mahindra Bank have decreased their stakes in troubled Yes Bank within two weeks of investing in the lender, as per the shareholding data given to the stock exchanges by Yes Bank. Sector analysts said the success of the scheme for reconstruction of Yes Bank is crucial for the bank’s future.
After the implementation of the reconstruction scheme, Yes Bank has been relying on certificates of deposit (CDs) to raise money for its operations at a time when depositors’ confidence in private banks has been shaken.
Yes Bank in its results for Q3FY20 reported a net loss of Rs 18,560 crore against a net profit of Rs 1,002 crore a year ago. The loss came on the back of a 4,400% year-on-year jump in provisions, which stood at Rs 24,766 crore for the December quarter. Slippages for the quarter were to the tune of Rs 24,587 crore, while gross non-performing assets (NPAs) stood at Rs 40,709 crore, or 18.87% of the loan book.
Investments made by the Financial Institutions in Yes Bank has lock-in period of 3 years according to which lenders are not permitted to sell 75% of their holdings. The 8 financial intermediaries which have invested in Yes Bank are State Bank of India, HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC first.