Yes Bank

About Yes Bank

Yes Bank, Indias fourth largest private bank, was rescued by the Reserve Bank of India in March 2020. The RBI imposed a withdrawal limit of 50,000 rupees per depositor. Founder Rana Kapoor had been arrested for fraud. The bank had grown aggressively through corporate lending, particularly to struggling infrastructure and real estate companies. Bad loans soared. A consortium of eight financial institutions led by State Bank of India invested 100 billion rupees to rescue Yes Bank. The case raised questions about the aggressive growth model of Indian private banks and the quality of regulatory oversight. Yes Bank recovered under new management but at significant cost to existing shareholders, who were diluted by 90 percent.