The story of Yes Bank, India's 4th largest private bank, began when three successful bankers started an NBFC. With slow and steady growth, it became a bank in 2004 and went public in 2005.
With steady growth in the 2000s, Yes Bank became embroiled in a promoter feud, which weighed on its business prospects.
It had a business model of making risky loans to companies with sub-standard balance sheets and without sufficient collateral leading to a huge risk build-up.
The IL&FS crisis led to its largest borrowers like the Essel Group, Anil Ambani group, and DHFL group becoming stressed and later defaulting.
Subsequently, RBI declined Rana Kapoor another term as CEO because of his mismanagement and corporate governance lapses.
With a lot of stress building up and non-disclosure of increasing NPA's, RBI appointed Ravneet Gill as the CEO who disclosed huge under-reporting of NPA's leading the bank to report its maiden loss in March 2019.
After several failed capital raising attempts, it was clear that the bank was heading into a clear decline.
Following this, Rana Kapoor sold his entire stake in November 2019.
Thus, when it appeared that nothing else could be done, the apex bank had to intervene and imposed the moratorium till 3 April capping withdrawals at Rs 50000. A rescue plan has been initiated with an expected investment of about 10,000 crores by SBI along with a consortium of other banks.
But still more skeletons are expected to tumble out of the closets of the bank and Rana Kapoor's world of banking.
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