Dip the loan given to companies like Jet Airways and CCD to Yes Bank

New Delhi, Mar 6, 2020, Friday

The reasons behind Yes Bank's financial crisis are coming out now. One of the main reasons is that the bank offers loans to companies that have sunk themselves.

Looking at the history of Yes Bank, the bank started small and became a company with assets worth over Rs 3 lakh crore in a decade. Because of this, the RBI also suspected that there was a mess in the bank's account.

On the other hand, the bank also gave loans to companies whose financial transactions were dubious and other banks were not offering loans to these companies. The list includes L&FS, Divan Housing, Jet Airways, Cox & Kings, CCD.

All these companies today are either economically inactive or have their NPA record level.

However, during the time the loan was issued, Yes Bank's balance sheet was booming. At one point, the bank's stock had reached Rs 1,400. However, as the NPA of the bank started to grow after the loan amount stopped coming back, the panic continued to increase.

RBI then intervened and in 2018 Rana Kapoor was removed from the post of chairman of the bank. Over the past few months, the bank has tried to improve the financial position but has not been successful.