Indian YES Bank Defaults ! Millions of People Affected.

[CrazyZ]

Debt bubbles are there in practically every significant economy on the planet.

India's debt bubble is most likely to pop. It's non performing loans are the highest of any big economy.

 

[newb3e]

Wow, that some really financial wiz input !! If you don't understand economics, why comment on it with a totally irrelevant context?? Mods, doesn't this count for inflammatory behaviour ??

interaction with bakhts has fked my brain!

 

[ARMalik]

So looks like that not only the Bank has gone down the toilets, the Banks Founder is a fraudster and money launderer as well !! Watch out - a lot of Indian Banks are in the same game. This is about to get really messy.

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https://www.deccanherald.com/nation...nder-rana-kapoors-house-in-mumbai-811318.html
ED raids Yes Bank founder Rana Kapoor's house in Mumbai

The Enforcement Directorate on Friday raided the Mumbai residence of Yes Bank founder Rana Kapoor in connection with a money-laundering probe against him, officials said.

The action is being conducted under the Prevention of Money Laundering Act (PMLA) and is aimed at collecting more evidence, the officials said.

The central agency is probing Kapoor's role in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks that were reportedly received in his wife's accounts.
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Indians are now rushing to other banks as well and withdrawing money !! Folks, this is going to get really ugly very quickly!

.......................
https://punemirror.indiatimes.com/p...et-banking-collapses/articleshow/74504463.cms

'Not able to withdrawal a single penny' - Yes Bank crisis sparks fear, account holders rush to ATMs as net banking collapses

 

[ARMalik]

https://economictimes.indiatimes.co...ndian-banks/articleshow/70458734.cms?from=mdr

A major crisis may be brewing for Indian banks

 

[Hakikat ve Hikmet]

Ahh Indians Ahh!!!! Always saving to one day find it' all gone!!! A humungous amount of gold had been accumulated inside the Somnath Temple inly for Sultan Mahmut to raid it...

Modi's Marawai cohorts have learnt the tricks!! They have the money, and the rest of the RSS the blood of the Muslims...

 

[sohail.ishaque]

Indian Muslims are responsible for this. Goli maro salo ko...

I thought this was an ISI's napaak Sajish..

 

[Abu Shaleh Rumi]

I thought this was an ISI's napaak Sajish..

Delete this comment...

 

[CrazyZ]

True. It's too late to action. I am just thinking about those people who bought this bank's shares @Rs.300 one year ago, now @Rs.15.
This bank was long ignored by Govt. and RBI. Hope my money doubles coming Monday.

How did your stock trade go??

 

[Dark1]

How did your stock trade go??

Share is 21 today. I had bought at 12 , so nearly doubled. Once sbi makes a formal move , the share price will increase fast.

 

[CrazyZ]

Share is 21 today. I had bought at 12 , so nearly doubled. Once sbi makes a formal move , the share price will increase fast.

congrats.

 

[pikkuboss]

How did your stock trade go??

More than doubled. I bought @ 11. sold at 23. Again bought @21. I don't bet on news, I bet on facts that no bank defaulted in Indian history. Either they are merged with others or taken over by PSBs. In this case, It will probably be taken over by state bank of India. The shares are much much undervalued, it just needs to survive for the share price to double again.

 

[hembo]

True. It's too late to action. I am just thinking about those people who bought this bank's shares @Rs.300 one year ago, now @Rs.15.
This bank was long ignored by Govt. and RBI. Hope my money doubles coming Monday.

How did your stock trade go??

Yes bank stock is already at Rs. 29. Your investment more than doubled in few days. I'm breaking my head with a large piece of brick!!!

 

[CrazyZ]

https://www.ft.com/content/b395c5fa-6383-11ea-b3f3-fe4680ea68b5

Yes Bank implosion spells trouble for Indian bondholders Rescue endangers $1bn in high-risk bonds and deals blow to other lenders seeking to raise funds Yes Bank’s precarious position could spark contagion Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Benjamin Parkin in Mumbai an hour ago Print this page 1 Indian authorities’ takeover of one of the country’s largest private banks could wipe out more than $1bn in high-risk bonds, dealing a blow to the mutual funds that piled into the market and leaving other lenders struggling to raise money. The Reserve Bank of India last week took over Yes Bank, a once high-flying private lender that experienced a sharp rise in bad loans, after the bank struggled to find investors to shore up its capital base. The RBI proposed a rescue plan that would see India’s largest public lender, the State Bank of India, take a 49 per cent stake with an investment of Rs75.2bn ($975m). The intervention shook Indian markets, as investors worried that Yes Bank’s precarious position could spark contagion. But it has caused the most consternation among a class of bondholders who stand to lose everything under the terms of the rescue. “People didn’t believe that it would ever come to this,” said Suman Chowdhury, president of Acuité Ratings & Research, noting that Yes Bank had been seen as one of the top private-sector banks in the country. “There’s a painful process until this whole thing settles down.” The RBI has proposed that Yes Bank’s additional tier 1 (AT1) bonds be wiped out. These quasi-equity instruments, introduced after the financial crisis of 2008-09 to shore up banks’ balance sheets, have high coupons and perpetual maturities, meaning that banks do not need to repay the principal. But crucially, the bonds can also be written off if the lender ceases to be a viable entity. Similar instruments were issued by banks around the world, as regulators encouraged funding structures that could be dissolved relatively easily if a lender hit trouble. In India Yes Bank was one of the largest private-sector issuers of such bonds, with about Rs108bn ($1.5bn) of AT1 debt outstanding, according to Acuité. The move by the RBI has therefore come as a shock to asset managers such as the Indian arms of Franklin Templeton and Japan’s Nippon, which in recent years stuffed mutual funds full of these higher-risk bonds, luring customers with the prospect of better returns. A graphic with no description AT1 bonds were seen as a good way for risk-hungry investors to participate in the expansion of India’s debt markets, fuelling fast-growing lenders such as Yes Bank — which in turn funded ambitious industrialists in sectors such as real estate and so-called shadow finance. But slowing growth caused many of the banks’ bets to sour, leading to an uptick in corporate defaults, straining balance sheets and contributing to a broader unwinding in the financial system. Yes Bank’s loans, for example, grew more than 30 per cent a year from 2014 to 2019. But non-performing assets more than doubled to 7 per cent in September last year, from 3 per cent just six months earlier. Many analysts believe the true extent of Yes Bank’s stress runs much deeper. According to ICRA, a rating agency, Indian banks between them have issued Rs940bn ($12.7bn) in AT1 bonds with the share split between state and private banks. If the write-off of Yes Bank’s AT1s goes ahead, analysts say it could have a ripple effect for other private banks who want to sell similar instruments, cutting off a valuable source of funding at a time when balance sheets remain under pressure. One such private lender, IndusInd, suspended plans for an AT1 bond issue after the RBI’s intervention last week. A graphic with no description “Investors’ appetite for future issuances of AT1 bonds [will] reduce,” said ICRA. This will prompt “some of them to avoid these bonds in future”. Wiping out the bond would also be a blow to India’s young mutual fund industry, which has seen roaring growth as millions of Indians began to invest in financial products for the first time. Confidence has already been damaged by funds’ exposure to stressed real estate companies and shadow banks, some of which have gone bankrupt. Some AT1 bondholders are attempting a legal challenge against Yes Bank’s rescue plan, arguing that their holdings should be converted into equity rather than written off. Analysts at HDFC Securities said that, while the move to write off the bonds was in line with regulations, it was “slightly odd,” given that the bank’s capital — stated at 16 per cent of its risk-weighted assets at the end of September last year — had not yet been reduced to zero. Another Mumbai-based analyst was less sympathetic, suggesting it was a much-needed wake-up call for mutual funds and investors. “Everybody hates losing money. But the fact is that these bonds were considered quasi equity . . . Holders were compensated for carrying that risk,” he said. “As they keep performing, you’re lulled into believing they’re quite safe.” Additional reporting by Thomas Hale

 

[CrazyZ]

Yes Bank to be dropped from Nifty bank index from March 27 Bandhan Bank to replace Yes Bank in Nifty50 from March 27 GmailLinkedinPinterest PTI PTI, New Delhi, Mar 13 2020, 02:08am ist updated: Mar 13 2020, 02:08am ist YES bank to b...

Read more at: https://www.deccanherald.com/busine...om-nifty-bank-index-from-march-27-813216.html

 

[-blitzkrieg-]

Yes Bank becomes No Bank.