To be sure, one should only stay invested in any stock out of his/her own conviction based on facts not emotions. To that end, one shouldn’t expect empathy from fellow investors. One can exit at a loss if not confident about the fundamentals.
No offense but just a thought. Cheers!
Fair point…empathy for not creating a false propaganda… I hope we remember Nestle saga on maggi couple of years back.
Business was intact,solid then also and rebounded later with full vigour.
The same is happening today as well in yes bank case.
People dont have even an iota of knowledge about business are writing obituaries about it daily.
“No offense but just a thought. Cheers!”
Yes the CEO needs a team to work with but that team is his senior management not the board. The board’s job is to primarily protect the shareholders including the minority shareholders (not just promoters). The fact that there are serious Corporate Governance issues with the company (yes I consider the huge NPA deviation as a CG issue) means the board comprising of Yes Men has not done its job. However this is not a problem limited to Yes Bank it is spread across corporate India. The CEO’s are larger than life personalities where as the board is generally made up of people who are not as famous. We all know the CEOs of ICICI, HDFC Bank and Yes Banlk but how many of us can name a prominent board member of these banks.
Yes bank board exits due to differences with ceo Rana Kapoor… but what is baffling is Rana Kapoor himself is moving…
Please go thru the above picture showing the investments more than 1% in yes bank. There has been new additions in September 2018 by the world’s largest mutual fund house Vanguard, to the tune of 2.24% which in INR terms is 495 Crores(for 56 Mn shares). The question is, have not they done due diligence in picking the script? should they have waited for the dust to settle down? If the bank has big issues as the folks/media is pointing out, then why the biggest fund house is buying it,at the time of distress…Think about it, take your own decision, do your own research and do not get influenced by what others say…ultimately its your money.
FYI Vanguard emerging markets funds other investments in India are: Reliance industries,HDFC,INFY,TCS,HUL,Axis bank,maruti,HCL,M&M,L&T,Bajaj finance,JSW steel,Airtel,Vedanta,TechM,Coal India, Ultratech,NTPC,SBI,iNDIAN Oil,Eicher, Indiabulls housing, Godrej,Titan,Grasim etc. …All solid names.
refer the link : Vanguard Mutual Fund Profile | Vanguard
There is churning going on within the organization…
The question which disturbs me is with regard to the independent board member who suddenly found conscience and resigned due to differences.
Whether he was part of the board when board suggested Rana Kapoor’s name second time to RBI or not ?
If yes, and he did not show spine then, it appears to be opportunism.
Rats fleeing the sinking boat rather than actively contributing to and justifying their hefty perks…
Sadly, that is the story with most so called independent directors in India…
Government should bring a strict law to ban these people who are happy to allow organizations use one’s name as independent director at a hefty sum…
May be one or two can be jailed to set a precedence…
Yes Bank has come up with a much needed clarification on recent developments: https://www.bseindia.com/xml-data/corpfiling/AttachLive/04b3549f-1c59-45c2-b570-7f7dc30a5dba.pdf
Summary: Post the back-to-back resignation of 3 members, the board consists of 7 members including Rana Kapoor; their credentials/previous posts held are mentioned. (I feel this is to indirectly assure shareholders that there won’t be further surprises in the form of resignations.)
Moreover, they’ll meet on Dec 12th to discuss the final shortlist for new MD/CEO. On Dec 13th, they’ll meet again to discuss replacements for those who resigned recently. The doc also states that efforts are underway for mutual resolution with Madhu Kapur and family.
The fund that you are talking about is an index fund. The only criteria for entry is the market capitalization. I wouldn’t read anything into their purchase.
DIsclaimer: I don’t have any position in the stock and don’t track it as well.
I have a simple query , can anyone please help me in understand this.
RBI removed CEO for under reporting of NPA’s. Does that mean the NPA’s which were not reported earlier will appear in the future upcoming quarters. Will it increase the NPA’s by larger extant ?
Hello Abhishek,
Please double check the JUN18 holding for “Vanguard emgering…”. They had a holding of about 1.19% in that quarter.
RBI has not given any reason officially , NPA issue can be one of the likely reason and in addition to that there can be other issues too.
Disc- its of the top 2 holding in my PF
Mixed bag of news in this article: RC says bank is not focused enough on searching for new CEO.
Also RC says he believes in"inherent strength of the bank" & is hopeful that the bank will tide over the current crisis.
This is all as per “sources” so don’t know to what extent these are true…
please refer the 4th last item in the list…its a new entry from Vanguard
Interesting piece on the careless way independent directors behave in corporate India with only the latest eg being Yes Bank.
Here’s a little story about a banking tycoon’s family fundraising and the warnings ignored by India’s finance industry, writes [@andymukherjee70] (https://mobile.twitter.com/andymukherjee70) (link: https://bloom.bg/2DT4CVf) bloom.bg/2DT4CVf via @bopinion
What is surprising is that these complex transactions have been in the public domain and most of buy side was aware of all these. His family has indulged in series of real estate transaction off late and obviously it has raised eyebrows. Forget about tens of analysts and countless fans of Mr RK even RBI chose to ignore it until recently. Having said that, I still think this article has been written for scare-mongering. I see a clear trend among financial journalists to perpetuate liquidity crisis by deliberately painting a bleak picture just before general elections.
I really like the article of Andy Mukarjee - but timing of article makes me little bit sceptical of author intentions - If he really wanna do favour to retail investors he could have done long time back when he found the news -
