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 -
@Yogesh_s are you still with yes bank ? have you reduced or increased your positions? old timers need a advise on how this will pan out in near term… everyday one or the other news comes in…
Disc Hold few K’s shares at high at close to 350
While the article is interesting, the clarification given by reliance mutual fund that the current value of pledge is RS 4000 cr against RS 1400 cr loan extended shows adequate coverage.keeping both in perspective, such news are being floated to scare the weak investors , bring down the price of stock which is also indicated by price movement of today morning wherein it recovered after initial fall.IMO things should settle in 2to 3 quarters .Only risk is family dispute not getting settled.
Disc:own around 2700 shares hence views may be biased
The question remains why these shares are not disclosed as ‘Pledged’.
The shares may not have been technically or legally pledged.some Sr boarders may Pl throw some light pl
It is like an unsecured loan based on a personal guarantee. When one pledge shares, shares are kept with the lander, who can just sell the shares in case of default. Here, shares are still with the owner and lenders have to resort to other methods (going to court etc) to recover the money. I believe there are covenants in the loan agreement that he cannot sell or pledge the shares at other places.
One general query: If one takes loans and give collatrall/guarentee, as his shares, is it not a pledge. That to by promoter.
No wonder Yes bank is always rated below par among the top private banks.
Its a lending business i.e; money is raw material, here trust plays very important role. This is the prime reason HDFC become a brand even in lending business.
While all these stories be it 100% true, where were these few months back ? Ever since Rana Kapoor’s extended term was denied by RBI, there is literally no day without Yes Bank making into the news. All of a sudden every media, bloggers are pondering on Yes bank. And stock goes to 180s and immediately bounces to 200s in few days. Desperate to push the stock down and buy ?
Disc: Accumulating at 180s.
Although this post is not related to the company’s business, I too feel that the spurt in negative news surrounding Yes bank is in an effort to push the stock price down. For example, yesterday’s non-subscription based article on Moneylife regarding the Yes bank debt issue seems to be written in such a manner as to elicit negative sentiments:
In a scandalous case of using public money to fund private deals, mutual fund schemes of Reliance Mutual Fund, controlled by Anil Ambani, and Franklin Templeton, have lent money to the front companies…
In the light of new findings, the RBI should be forced to disclose the basis on which it decided not to extend Mr Kapoor’s term. People have a right to know whether its apparently punitive action was commensurate with the wrongdoing.
There has been an exodus of independent directors and others from the Yes Bank board in the recent past. One would presume that they rushed for the exit after discovering Mr Kapoor’s personal deals and gross misuse of his position.
For a majority of the people of India (who are not government employees), this money is expected to see them through their retirement to the end of their lives.
Disclosure: I’m invested in Yes bank and views may be biased.
Moody’s downgrades Yes Bank.
Somebody should really downgrade these rating agencies first of all!
Straight from Horses mouth in depth from Moody’s