Know a day’s media/retail knows better than street - That’s the problem and give opportunity for smart investors - over info and everybody guessing what could be and giving lot of tips and rumours - In this digital world , it’s better to know what to skip rather than read everything and leads to confused state - need own philosophy and mraket provide opportunities to everybody and it’s like broken clock theory . Even in last two months Yes bank swinged 230 to 170 to 250 to 150 … in fact what changed for yes bank business in last 2 months - even thier deposits growing … only people perception changing based on news - if something wrong with fundamentally then we need to worry … else it’s part of life … it’s like 80/20 … we worry news or latest updates (80 %), which is ( 20% ) of impact of business or value of company . Ask simple questions and get great insights - simplify … Does Yes bank worth 37k cr ? With 6lac cr compitator … even before Rana Kapoor news , market discounted most of nagitives of bank ( not even crossed or arond 3 times BV ) , why ? And now it’s just elevated with latest happenings ? Does Yes bank stay relavent in next 4 to 5 years ? Who will fill the gaps of NBFC ? … long way to go Pvt banks with reasonable valutions compines … may be time correction but won’t see loss of perment capital loss …
Disc - Invested heavily with avg price of 185 ( from 230 to 150 ) … will add more if prices goes southwards …
Are they are not able to find any one who is far from any allegations ??
Confused on how to consider this… it’s reminding that in recent interview HH pointed that for a clean track record person joining YES board a very tough decision.
Look at this way - govt is keen on hiring private sector talent to revamp PSU banks and here the promoter wants retired PSU names with questionable past to decorate the board. It all seems to be deliberate to enable him to do backseat driving. Not a great development if someone is looking for early signs of revival.
The continued saga of controversies, somehow, indicate that the team running the Bank doesn’t care for public perception. Does it augur well for minority investors?
Like @valuestudent mentioned, when huge money is on the line and margins are thin, like in Banks and NBFCs, management integrity should be more important than the numbers.
Where is the issue? No allegation had been established even by CBI after investigations. In Govt, there can be false allegations by the colleagues who want that post.
Often times allegations are not proved in our country and they remain just as allegations but the truth more often than not will be different. Times like these, the management should choose someone who has impeccable record of honesty.
Hi Vijay,
I am aware that he got clean chit. But at this time of so many issues hanging around, getting someone with strong credentials with clean background could have been far better. Though I understand commenting at this level is fat easier than acting at such a high level.
There are still a few very important posts left at Yes Bank, including Chairman and MD posts. Let’s have patience and see what actually transpires in that regard (in context to impeccable background)
It seems one can look at the company or the price after a year for a meaningful progress or the lack of it. But with so many contrary opinions and perspective surrounding the stock, one can be impatient.
Appoint some respectable people, instill some confidence in the investors and focus on doing your job, this time with no room for errors.
Nice comment Sir. This is why I always mention that WB and Peter Lynch’s books do immense damage to normal souls. These people are extraordinary geniuses whose work can be only understood by geniuses. Understanding not as understanding the words’ meaning but internalizing what they have told. It is immensely difficult task. As you mentioned, the times too were different.
For normal souls, few technical indicators should be fine to begin with and as they grow in maturity, they can start reading WB and implementing his ideas.
Came across this post on linkedin by an ex colleague from YES Bank. Thought it would be helpful for all of us to get a glimpse of the liability landscape.
with due respect, this table is not good enough to make any final conclusion. Few more columns are required like no. of rural/semi-urban/urban branches. YB has majority of branches in big cities/western India where CASA should be high naturally. Secondly, they serve quite a few corporates and they maintain their current accounts. However, this table does tell us that HDFC/Kotal bank are doing reasonably well. Even SBI which has huge no. of branches in the far flung areas is doing ok.
So do all the other banks. 6 out of the 11 mentioned above have more branches in Metros. RBI classifies branches into 4 types based on population - Metro, Urban, Semi-Urban and Rural. This includes the relatively ‘loved’ KMBL, IndusI & RBL.
So do all the banks. Have a look at the average balances across population groups below. Not just coprorates but key salary accounts.
Q. They are doing reasonably well on what terms? Have a look at the table below.
HDFC has 7% lower Semi urban branches from national average and a 15% lower than the Rural average.
KMBL is 14% more than YBL in metro and same in Rural.
I had earlier this year shared some inputs on this topic in @Yogesh_s 's thread on Indian Banking.
All relevant data points below. Some are slightly old as DBIE doesnt have live data.
No bank is doing social service by opening branches in Rural India. It is a mandate of how branches are to be opened by RBI. All banks including the haloed ones use loopholes in selecting locations. Lets not get into that part as it is a grey area.
My other point is lets make statements with data backing else we can put a disclosure that this is my ‘hunch’ or ‘guesstimate’. Cheers.
