The bank has come under serious liquidity crisis, majorly because of two things happening simultaneously. Firstly, several borrowers of the bank defaulted their payment, and secondly, the public started taking out money from their accounts.

The bank has come under serious liquidity crisis, majorly because of two things happening simultaneously. Firstly, several borrowers of the bank defaulted their payment, and secondly, the public started taking out money from their accounts. Since March 2019, more than Rs. 1 lakh crore has been withdrawn by its depositors which includes Rs. 77,000 crores of Fixed Deposits. On the other hand, loans worth Rs. 17,134 crores have gone bad i.e. the borrowers have defaulted on their payments. Thus, the bank is not in a comfortable position to pay back depositors’ money and thus feeling the heat. However, it is not yet a big crisis but a proactive step to control one. Is the bank running into losses? No, it’s not! But that the depositor’s money is blocked due to loans given by the bank and some of them becoming bad. As per it’s 2018-19 annual report, Yes Bank had public deposits of around Rs. 2.26 lakh crores while the bank has given out loans worth Rs. 2.36 lakh crores. Also read | Potential investor will have to pick up 49% stake in Yes Bank; SBI shown willingness: RBI Currently, the deposits have come down further to around Rs. 2.09 lakh crores, thus making it less than the cumulative loan granted by the bank. This means that, if all the money is recovered, it will have more than what it needs to pay back. Moreover, the bank’s net profit grew steadily from Rs. 1618 crores in 2014 to Rs. 4225 crores in 2018 but plunged to Rs. 1720 in 2019. It is expected to have gone down further but is still positive. How did this happen? Problems which lead to this crisis: Bad Loans/NPAs: The bank has been understating its non-performing assets (NPAs) and RBI has questioned it more than once in the past for the same. In FY’19 alone, it reported a divergence of Rs 3,277 crore in bad loans and Rs 978 crore in NPA provisions. Currently out of the Rs. 2.25 lakh crores loan, more than Rs. 17,000 crores have gone bad i.e. their recovery is very difficult. Poor Management: The corporate governance of the bank and management practices have deteriorated in the past. Several directors have resigned in the past, some blaming its MD & CEO, Senior Group President Governance & Controls and others. On top of it, people started withdrawing money from the bank and it also failed to raise additional money to save it from the crisis. What is the bank’s spread? It is India’s fourth-largest private sector bank in the country with a pan-India presence across all the states and Union Territories in India. Yes Bank has a footprint of 1122 branches and more than 1300 ATMs. It started in functioning in 2004 as a small bank and slowly grew into a full-fledged bank. Its customer base is not very clear but could run around several lakhs or even a few crores. What now? For a depositor of the bank, there is no need to worry as the bank still has more assets than liabilities. Moreover, even if the bank goes bust, as per the amended scheme, your deposits up to Rs. 5,00,000 is insured and the government will pay your money back if the bank is incapable to do so. Also, the State Bank of India is expected to invest Rs 2,450 Crore and take over the management of the bank. This will help Yes Bank recover from the trust deficit which is a major reason for the crisis. Having said so, those who need any amount in excess of Rs. 50,000 from their Yes Bank account could face the constraint since till 3rd April 2020, it would not be possible. However, once the situation is accessed, RBI could issue some relaxation.

Explainer: What is the Yes Bank crisis? 

The Sensex crashed 893.99 pts to end at 37,576.62 over rising coronavirus fears and Reserve Bank of India's(RBI) decision to put a "moratorium" on Yes Bank account holders to take out money.

<a href="https://www.wionews.com/business-economy/sensex-nosedives-over-1400-points-on-global-carnage-nifty-below-11000-284630">Also Read: Sensex nosedives over 1,400 points on global carnage; Nifty below 11,000</a>

The broader NSE Nifty also fell 279.55 points or 2.48 per cent to close at 10,989.45.

Earlier in the day, the Sensex had nosedived over 1,400 points in the opening session due to sell-off over the Yes Bank issue and coronavirus outbreak.

Shares of Yes Bank crashed 25 per cent after the RBI put a moratorium capping deposit withdrawals at Rs 50,000 per account for a month on Wednesday evening.

<a href="https://www.wionews.com/business-economy/shares-in-indias-yes-bank-crash-on-withdrawal-limits-284678">Also Read: Shares in India's Yes Bank crash on withdrawal limits</a>

SBI shares too fell six per cent along with IndusInd Bank, Tata Steel, Bajaj Finance, Axis Bank and Ultratech Cement.

The bloodbath at the markets affected the Rupee which fell 53 paise to 73.86 against the US dollar in the morning session. &nbsp;&nbsp;

The Sensex crashed 893.99 pts to end at 37,576.62 over rising coronavirus fears and Reserve Bank of India's(RBI) decision to put a "moratorium" on Yes Bank account holders to take out money.

The Sensex crashed 893.99 pts to end at 37,576.62 over rising coronavirus fears and Reserve Bank of India's(RBI) decision to put a "moratorium" on Yes Bank account holders to take out money. Also Read: Sensex nosedives over 1,400 points on global carnage; Nifty below 11,000 The broader NSE Nifty also fell 279.55 points or 2.48 per cent to close at 10,989.45. Earlier in the day, the Sensex had nosedived over 1,400 points in the opening session due to sell-off over the Yes Bank issue and coronavirus outbreak. Shares of Yes Bank crashed 25 per cent after the RBI put a moratorium capping deposit withdrawals at Rs 50,000 per account for a month on Wednesday evening. Also Read: Shares in India's Yes Bank crash on withdrawal limits SBI shares too fell six per cent along with IndusInd Bank, Tata Steel, Bajaj Finance, Axis Bank and Ultratech Cement. The bloodbath at the markets affected the Rupee which fell 53 paise to 73.86 against the US dollar in the morning session.

Sensex closes over 890 points down over Yes Bank, coronavirus fears

Yes Bank has been placed under "moratorium" with the Reserve Bank of India(RBI) capping depositor withdrawals at Rs 50,000 per account for a month.

<a href="https://www.wionews.com/business-economy/board-member-at-yes-bank-quits-cites-governance-concerns-273443">Also Read: Board member at Yes Bank quits, cites governance concerns</a>

"The Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank's depositors, it had no alternative but to apply to the central government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949," the RBI said in a statement.

RBI said <a href="https://www.wionews.com/business-economy/yes-bank-seeks-up-to-2-billion-in-preferential-new-share-issue-265494">Yes Bank</a> was in talks with investors including private equity firms to infuse capital.&nbsp;

"These investors did hold discussions with senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital," RBI said, adding,"since a bank and market-led revival is a preferred option over a regulatory restructuring, the Reserve Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank's management to draw up a credible revival plan, which did not materialise," the statement said.

<a href="https://www.wionews.com/business-economy/yes-bank-gets-12-billion-offer-from-global-investor-259044">Also Read: Yes Bank gets $1.2 billion offer from global investor</a>

In the statement, India's central bank said the move was necessary to restore depositors' confidence after the bank's inability to address potential loan losses and downgrades.

"The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank," the Reserve Bank of India informed.

In January, Uttam Prakash Agarwal, an independent board member with Yes Bank had resigned from the lender's board and stepped down as head of its audit committee citing major corporate governance concerns.

Yes Bank has been placed under "moratorium" with the Reserve Bank of India(RBI) capping depositor withdrawals at Rs 50,000 per account for a month. Also Read: Board member at Yes Bank quits, cites governance concerns "The Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank's depositors, it had no alternative but to apply to the central government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949," the RBI said in a statement.

Yes Bank has been placed under "moratorium" with the Reserve Bank of India(RBI) capping depositor withdrawals at Rs 50,000 per account for a month. Also Read: Board member at Yes Bank quits, cites governance concerns "The Reserve Bank came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank's depositors, it had no alternative but to apply to the central government for imposing a moratorium under Section 45 of the Banking Regulation Act, 1949," the RBI said in a statement. RBI said Yes Bank was in talks with investors including private equity firms to infuse capital. "These investors did hold discussions with senior officials of the Reserve Bank but for various reasons eventually did not infuse any capital," RBI said, adding,"since a bank and market-led revival is a preferred option over a regulatory restructuring, the Reserve Bank made all efforts to facilitate such a process and gave adequate opportunity to the bank's management to draw up a credible revival plan, which did not materialise," the statement said. Also Read: Yes Bank gets $1.2 billion offer from global investor In the statement, India's central bank said the move was necessary to restore depositors' confidence after the bank's inability to address potential loan losses and downgrades. "The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank," the Reserve Bank of India informed. In January, Uttam Prakash Agarwal, an independent board member with Yes Bank had resigned from the lender's board and stepped down as head of its audit committee citing major corporate governance concerns.

RBI imposes 'moratorium' on Yes Bank; withdrawals capped to Rs 50,000

Yes Bank Ltd aims to raise up to $2 billion in a massive issue of new shares to institutional investors and wealth managers as it soaks up the impact of bad loans in the country's crisis-hit shadow banking and real estate sectors.

The plan, announced late on Friday, would see the country's fifth-largest private sector bank by assets seek to sell new stock worth close to its existing market capitalisation of $2.4 billion at the close of trading on Friday.

As a major part of the plan, Yes Bank said it is in talks on a deal to sell shares worth $1.2 billion to Canadian billionaire Erwin Singh Braich and Hong Kong-based SPGP Holdings, which he backs. The bank said it expected those talks to close shortly.

SPGP Holdings did not immediately respond to a request for comment.

Shares of the Mumbai-based Yes Bank closed 2.5% lower ahead of the announcement on Friday. Its stock has risen about 20% since it said late in October it got a binding offer to buy shares of $1.2 billion from an unidentified global investor.

In its announcement, Yes Bank said other investors who have committed to buying shares include Discovery Capital, Aditya Birla Family Office from India and Citax Holdings Ltd &amp; Citax Investment Group.

Discovery did not immediately respond to a request for comment, while Aditya Birla Family Office and Citax weren't immediately reachable.

It also said a leading US&nbsp;fund house would subscribe, saying the name of the investor would be disclosed early next week.

Yes Bank's board of directors will meet on Dec. 10 to "finalise and approve the details of the preferential allotment and convene an extraordinary general meeting subsequently, to obtain the approval of the shareholders," it said.

The preferential allotment will also be subject to regulatory clearance. The approval of the Reserve Bank of India is needed to buy a stake of more than 5% in domestic banks.

Banking analysts say most of the funds raised by Yes Bank will be used to provide for bad loans. The lender's gross bad loans as a percentage of total loans - a measure of asset quality - spiked to 7.39% in last quarter.

Yes Bank Ltd aims to raise up to $2 billion in a massive issue of new shares to institutional investors and wealth managers as it soaks up the impact of bad loans in the country's crisis-hit shadow banking and real estate sectors.

Yes Bank Ltd aims to raise up to $2 billion in a massive issue of new shares to institutional investors and wealth managers as it soaks up the impact of bad loans in the country's crisis-hit shadow banking and real estate sectors. The plan, announced late on Friday, would see the country's fifth-largest private sector bank by assets seek to sell new stock worth close to its existing market capitalisation of $2.4 billion at the close of trading on Friday. As a major part of the plan, Yes Bank said it is in talks on a deal to sell shares worth $1.2 billion to Canadian billionaire Erwin Singh Braich and Hong Kong-based SPGP Holdings, which he backs. The bank said it expected those talks to close shortly. SPGP Holdings did not immediately respond to a request for comment. Shares of the Mumbai-based Yes Bank closed 2.5% lower ahead of the announcement on Friday. Its stock has risen about 20% since it said late in October it got a binding offer to buy shares of $1.2 billion from an unidentified global investor. In its announcement, Yes Bank said other investors who have committed to buying shares include Discovery Capital, Aditya Birla Family Office from India and Citax Holdings Ltd & Citax Investment Group. Discovery did not immediately respond to a request for comment, while Aditya Birla Family Office and Citax weren't immediately reachable. It also said a leading US fund house would subscribe, saying the name of the investor would be disclosed early next week. Yes Bank's board of directors will meet on Dec. 10 to "finalise and approve the details of the preferential allotment and convene an extraordinary general meeting subsequently, to obtain the approval of the shareholders," it said. The preferential allotment will also be subject to regulatory clearance. The approval of the Reserve Bank of India is needed to buy a stake of more than 5% in domestic banks. Banking analysts say most of the funds raised by Yes Bank will be used to provide for bad loans. The lender's gross bad loans as a percentage of total loans - a measure of asset quality - spiked to 7.39% in last quarter.

Yes Bank seeks up to $2 billion in preferential new share issue

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Explainer: What is the Yes Bank crisis?

Sensex closes over 890 points down over Yes Bank, coronavirus fears

RBI imposes 'moratorium' on Yes Bank; withdrawals capped to Rs 50,000

Yes Bank seeks up to $2 billion in preferential new share issue