Yes bank

(AKGupta) #640

I didn’t understand what the point of asking for an extension was in the first place.
Created more uncertainty. Still the best thing for the bank is to move on from RK’s leadership, select new leadership, clean up the books, declare NPAs/losses whatever, raise capital and herald in the new age of conservative growth. That’s the best way forward for everyone.

Disc : Invested and added recently as well.

(pradip) #641

Clarifications issued by the bank in response to NSE queries. They sound confident and claim of no wrongdoing g :slight_smile:

(AKGupta) #642

I don’t understand how this rumour mill has started and where it’ll end but obviously it is causing a bleeding in the share price.

Our public institutions like RBI, NSE should know better than to publicly crucify an institution which is still performing well by the way, by fanning these rumors.

What evidence does NSE has for which it has raised the queries? And why now all of a sudden out of the blue?

And I’m quite surprised that the mgmt is mute too. As if it doesn’t matter to them what’s happening.


Figures are in Millions and not in crores as he says.


1841 crores of outstanding debt? 10-25 bps of loans it seems but still big money.

(Vasu_Rana) #645

1.5 times of BV - 175 is key support level and unless it’s break that level , price stay rangebound till calmness comes into market - Panic selling give good opportunities as long as we have strict discipline of enrty and exit price - " Story of stock likely catch the fancy of crowd " - now story is in rumours and sell side - time Tell us either we right or wrong - Simple India need somebody to fund growth of 8% , either it’s Pvt or public banks - RBI and Govt knows very well that another scam in Pvt completely derail credit growth in India - after all most of participants in market knows problem of yes like divergence and management issues - it’s got elevated now and market and ilfs support the trend - intrestgly no bulk deals in NSE … seems to be few more trading sessions it’s trader paradise …

Disclaimer - long on this stock around 225 levels


Another troubled company in which YB is the largest lender among PVT sector banks!

(dprashant) #647

Which troubled company you referring to ? Is it part of RADAG ?


ILFS transport which is facing liquidity issues. What is RADAG?

(dprashant) #649

Sorry Reliance ADA group I meant .

(vrs) #650

Case of governance failure and skeletons to tumble after appointment of new board. Scrip may be taken a fresh look once new board is formed without RK.

(SS64) #651

I am newbie. So, not sure if my understanding is correct. I think the reason for extension is to clear all the backlogs regarding NPA’s and start afresh with new CEO. I am a customer of Yes Bank and see that there is lot of pressure on managers to have funds by end of month. Service wise its better than HDFC bank. Hope new CEO will tighten few things to make it more competitive. Their credit card approval is fair with thorough checks.

Disc: Invested in the drop and also customer of the bank.

(Ram Pratap Singh) #652

I consider myself a layman compared to knowledge of people here. IMHO,if one takes 2-3 year view there is less downside risk and great chances of upside. I think they being private bank would be able to resolve their issues with new team and capture the space vacated by PSU banks.

Disc: Invested and planning to add more if price corrects more

(Seeker) #653

Since many boarders are intimately familiar with Yes Bank, I have a few questions:

  • Why is the GNPA and NNPA of Yes Bank so low? Even stalwarts like HDFC Bank has higher NPA?
  • There was a mention that Yes Bank does better structuring which allows them to keep NPA in check. Can anybody throw light on what is the structuring they do when they give loans? My sense is that they take security from the promoter including his residential place and so on. But I thought almost all banks do that?
  • In one of the analyst calls, management talked about a nuclear option if company doesn’t pay. That was the first time I heard that their structuring may be somewhat unique. Not sure if anybody can throw more light on this?
  • Their treasury income and profit has consistently gone up in the last decade. This is when we have had volatile interest rate. Do we know how they are able to generate these amazing results?

Disc: Recently took a minuscule positions Yes Bank to study more and decide if I should scale the position.

(mrai74) #654

(avneesh) #655

Do you feel that stock price will run-up in a very short time and you won’t be able to buy it? My advice would be don’t try to average down. No one is in a hurry to buy this stock and neither you should be.

First let the price stabilize. Then it will be followed by a long consolidation (base formation) probably for 2-3 years. Then whenever price starts increasing you can buy in bulk.
Till then you can invest your capital in some other stock for real returns. It will enhance your portfolio returns as well as you will be able to buy a good company at the right time.

(S Khan) #656

The way yesbank and other financials are behaving past few weeks is eerily reminiscent of what happened circa mid july-august 2013 . The primary factors spooking the markets are somewhat similar to what happened during that period :

  1. Rapidly depreciating rupee.
  2. Murmurs surrounding fiscal deficit.
  3. Strong likelihood of Interest rate hikes by RBI

Here’s the performance of some of the major financials during that period.

15-07-2013 28-08-2013 Fall Peak Fall from peak
YESBANK 500.35 225.85 -55 542.75 -58%
BAJFINANCE 1481.15 984.25 -34 1581.15 -38%
DHFL 159.05 115.1 -28 221.05 -48%
GRUH 234.3 199.25 -15 246.9 -19%
HDFC 848.5 652.75 -23 929.5 -30%
HDFCBANK 695.45 561.95 -19 725.15 -23%
ICICIBANK 1061.05 796.35 -25 1231.95 -35%
INDUSINDBK 506.35 344.55 -32 529.35 -35%
SRTRANSFIN 678.65 508.35 -25 835.4 -39%
LICHSGFIN 237.85 162.55 -32 297.25 -45%

Ever since 2014 financials have enjoyed a benign and favorable interest rate environment leading to rapid growth .This looks like market’s way of rapidly repricing the financials for a more challenging interest rate environment. Yes bank for whatever reason (corporate governance,Accounts fudging accusations etc ) has always been the most volatile of all frontline banks during inflection points. its difficult and fool hardy to catch a falling knife and pick a bottom , i would wait for a 15-20% rally from the most recent low before thinking of making a purchase .Buying based on a Fall from Relative valuation multiple just a month or two ago can be hazardous.

([email protected]) #657

Received a message through whatsapp. If true, looks like some bad time ahead.

Arun Jha has sold 40000 shares on 24.9.18
Ms Madhu Kapur has sold 3.50 lakh shares on 21.9.18
Mags Finvest has sold 5 lakh shares on 21.9.18.

If some investor friends can get some information on bulk deals, will be of good help. Intention is to alert friends of possible problems in the books of the Bank. Not to create any kind of panic.

What I can confirm is one of the PMS scheme has exited fully from Yes Bank during last 10 days.

Wish that my assessment is wrong, but feel everything is not alright with the Bank. Or else the Board would not have asked RBI to consider its request for extension of RK till Sep 19

Disc: Invested, added a small lot on 21.9.18. With the kind of clarification by the Bank to NSE, will wait for some time for a clear picture to emerge

(vaibhav) #658

How much is 3.5lac shares out of her total holding

(jainnitinp) #659

First of all, not sure if whatsapp messages can be relied on.

EVEN IF IT WERE TRUE, according to the latest shareholding pattern, Madhu Kapur holds 7.62% or 17.53cr shares. Is a sale of 3.5lakh shares material enough?
Similarly, Mags Finvest holds 1.7% or 3.91cr shares.

Not sure who is Arun Jha or the PMS you are talking about.

The bigger question however is, do you want to base your decisions on a whatsapp forward?

Disc: Invested