Unveiling Yes Bank's Journey: Rise, Fall, and Rebound

Yes Bank

Founded in 2004, is a major entity in India's private banking industry, based in Mumbai. Serving a diverse clientele, including retail customers, MSMEs, and large businesses, Yes Bank operates in 300 districts with 1,198 branches, demonstrating its commitment to accessible banking services.

The history of Yes Bank begins in 1999 when it was a non-banking financial entity. It was established by Ashok Kapur, Harkirat Singh, and Rana Kapoor, who leveraged their substantial banking knowledge to fuel its expansion.

Yes Bank faced significant challenges, particularly due to non-performing assets (NPAs) in the late 2010s, causing financial instability. A critical intervention by the Reserve Bank of India in March 2020 resulted in a leadership makeover, with Prashant Kumar tasked with recovery strategies. This restructuring, supported by a consortium of large banks including SBI, ICICI, and HDFC, signaled a pivotal change for the bank.

Currently, Yes Bank is financially stable, with projections forecasting improvements in revenue and net income by 2024. Innovations such as the Yes Pay digital wallet and initiatives in affordable housing and vehicle loan sectors highlight the bank's active service portfolio.

SBI plays a crucial role in Yes Bank's reshaped ownership framework, fortifying its financial foundation and reinforcing regulatory strength. This diversified shareholding underscores its strong investment appeal and market confidence.

Yes Bank is noteworthy for its admirable ESG score, recognized by bodies like S&P Global, signifying its commitment to sustainable banking practices.

Looking forward, Yes Bank is focused on sustained growth via strategies to expand its branch network and improve product offerings. Developments in governance, risk management, and customer service strategies position Yes Bank as a dynamic and sustainable leader in the banking sector.

FAQs