The more recent report would be much more informative.
The author’s thesis seems to be that Yes Bank’s NPAs were less than peers, so something is up. Nothing in the 2015 report came to pass - steel, power and construction are not the issues presently; JayPee, Essar, GMR also are also not (yet) the source of problems. I think it is erroneous to believe that Yes Bank’s current issues are of the same nature of ICICI Bank’s and Axis Bank’s several years ago.
Given that the RBI gave the bank a ‘clean chit’ upto FY2018, the stressed asset book comprises mostly of companies affected by the events of FY2019. Sure there may be some previously evergreened accounts that are now showing stress, but I wouldn’t bet on these.
Indian promoters keep teaching new lessons every day. But we need to stop learning the hard way and start learning from other people mistakes or we can never be ahead of the game in India. It’s very hard to unlearn bad habits but I am staying away from questionable management in the name of diversification. It’s much better to have 10 stocks than to have 15 with an Yes Bank and Indiabulls in the portfolio!
Indiabulls housing fin releases pledged shares (with Yes Bank) worth more than 500 crore. Will it have any material impact on share price or NPA situation of Yes Bank?
Shares would have been pledged to borrow money from bank, so release of pledge wouldnt mean that borrowed money has come back? Also, the document filed to exchange, image of which I posted earlier, mentions that release is resulted after full payment of loan.
Whether Bank lends to NBFC or NBFC lends to a Bank everyone knows in this forum. Post clearly mentioned IndiaBulls promoter entity repaid said loans fully and hence pledged was released. People spreading rumors shouldn’t be in this forum. Moderators should note.
The bet is only on Ravneeth assuming he walks the talk( No more NPA’s apart from 10K CR in the watch list, 1B$ capital raising plan intact and hoping this happens in next few weeks, ROA target of 1% which has fallen to 0.5% from 1.6% ). on the downside if the slide continues by 30 to 50% from here on, Yes could be a sure shot acquisition candidate.
I think both of you are invested in Yes Bank and hence have studied this company in detail. I would like to seek your opinion about this stock. Is the damage more structural in nature due to promoter issues and dodgy lending practices or you feel with new leadership in place, it can be overcome…
I respect your knowledge in this area and hence would love to hear back from you
Sorry to take the liberty of jumping in but ultimately its the PE investors putting in fresh money who will decide the near term fate of this stock. Anyone putting in half of a billion to one billion will do a thorough due diligence. I see no other trigger for the stock for now. Also given that the last QIP happened at 300 per share about 2 years back, the current QIP should happen at a minimum of 150 if not more.
