Anil Ambani, Subhash Chandra's Essel Group And Vodafone Among Borrowers Of Crisis-Hit Yes Bank

Yes Bank has been put under a Reserve Bank of India (RBI) imposed a moratorium to avoid the cash-strapped bank from collapsing.Finance Minister Nirmala Sitharaman said that the decision to impose restrictions including cash withdrawal limits was taken in the interest of the bank's health, and a new CEO was appointed in September 2018 and cleaning up of the bank started.?

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The bank which was incorporated in 2004 focused on corporate banking, with retail banking and also asset management as a subsidiary function.And that seems to be undoing of the bank. Sitharaman said that the crisis-hit lender’s exposure to stressed corporates dates before 2014.?

“The exposure of Yes Bank to some of the very stressed corporates has been before 2014. These are public domain names and I am not violating any customer privacy Anil Ambani (Group), Essel Group, DHFL, IL&FS (and) Vodafone are some of the very stressed corporate to whom Yes Bank has been exposed,” she said.?

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Around 62 per cent loans of Yes Bank from the corporate books.?

According to ICRA, the worsening credit profile of Yes Bank's large borrowers led to a sharp increase in the level of stressed assets in relation to its core capital.On Friday IRCA downgraded the crippled bank's bonds worth Rs 52,612 crore.The downgraded bonds are Basel III-compliant Tier-II instruments and include Rs 10,900 crore worth hybrid bonds which has been lowered to negative.?

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Sitharaman said that the RBI has been monitoring issues relating to Yes Bank since 2017."The RBI noticed that governance issues were of serious concern. There was definitely a culture of weak compliance. There were wrong asset classifications together with risky credit decisions. Since RBI started getting clear indicators, they took some concrete steps which they have informed about," she added.?

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Since 2004 when Yes Bank was formed, it has been under the same management. In September 2018, RBI said that the leadership should change. A new CEO was appointed in September 2018 as a result.Also, the cleaning up of the bank started. The promoter who was asked to let go of his shares had asked for more time."He was compelled to let go of his shares on the insistence of RBI. In the meanwhile, investigative agencies pointed out malpractices of some of the members of their top leadership. A member resigned after CBI tightened the noose," said Sitharaman.?

In March 2019, the new CEO started working in collaboration with RBI to clean up the bank. A Rs 1 crore fine was levied on Yes Bank in March 2019. SEBI also started an investigation in September 2019.