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Yes bank: an untold story

Kumar Ramchandani (LJ Institute of Management Studies, Ahmedabad, India)
Kinjal Jethwani (LJ Institute of Management Studies, Ahmedabad, India)

Emerald Emerging Markets Case Studies

ISSN: 2045-0621

Publication date: 4 May 2021

Issue publication date: 4 May 2021

Abstract

Learning outcomes

The learning outcomes are as follows: understand the mechanism of sourcing and allocation of funds in the Indian banking industry; compare financial indicators of Yes bank with the industry average and interpret the hidden stress; understand the role of NPAs in the banking industry and analyze Yes bank’s performance; and identify the possible red signals in the business model of Yes bank.

Case overview/synopsis

The case narrated the story of Yes bank which was considered as one of the most promising and rising banks of India. The stock of Yes bank had been the preferred investment choice for many investors because of its outstanding performance in almost all the important parameters of the industry since 2005. Since its inception, investors favored the stock with an assumption that this new generation bank had a unique as well as a sustainable banking model. However, after the year 2016, Reserve Bank of India (Indian central bank and banking regulator) found huge under-reporting of non-performing assets (NPAs) in the three (i.e. 2015–16, 2016–17 and 2018–19) out of its four annual regulatory inspections, casting doubt in the way Yes bank functioned. Risk and aggression seemed to be the two most important aspects of Yes bank’s culture and this case tried to narrate the same through various financial indicators. The ratio comparison with the industry average indicated the possible gray areas of Yes bank, which was once considered as the most promising bank of India. Unfortunately, even the change of guard at the helm of Yes bank did not change the fate of the bank.

Complexity academic level

MBA/PGDBA/Executive MBA.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS 1: Accounting and Finance.

Keywords

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.

Citation

Ramchandani, K. and Jethwani, K. (2021), "Yes bank: an untold story", Emerald Emerging Markets Case Studies, Vol. 11 No. 1. https://doi.org/10.1108/EEMCS-04-2020-0123

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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