Yes Bank has interests in syndicated loans and corporate banking. It has three subsidiaries – Yes Bank, Yes Capital and Yes Asset Management Services. As of September 2018, Yes Bank had taken syndicated loans from eight large international entities including ADB, OPIC, European investment bank, banks in Taiwan and Japan for amounts ranging from US$30 million to US$410 million, which it in turn lend to small and medium scale enterprises as well as large corporates. It has also both taken as well as given short term loans to a number of retail and corporate banks in Taiwan, Japan, the United States, and Europe. It has partnered with the US government based OPIC and with Wells Fargo to support women entrepreneurs. Yes Bank provides Unified Payments Interface services for a number of major companies, such as Airtel, Cleartrip, RedBus, and PhonePe among others. In January 2020, it was responsible for handling 514 million UPI transactions out of the 1.31 billion made that month. Yes bank has acquired over 24 percent of stake in dish TV India on 30 May 2020.
As of March 2018, as per its annual shareholder's report, the three largest shareholders of Yes Bank limited were foreign portfolio investors, insurance companies, and mutual funds including UTI. Smaller shareholdings were owned by its three promoters and other investors including Madhu Kapur, Mags Finvest Pvt. Ltd., and LIC India under its various schemes. Yes Bank limited operates under three distinct entities – Yes Bank, Yes Capital and Yes Asset Management. On March 2020, State Bank of India invested Rs 7,250 crore in the bank amid financial crisis and remains 49% stake capital owner of Yes Bank.
Recent developments
In September 2016, Yes Bank scrapped its proposed $1 billion share sale due to market conditions. The company subsequently attempted to relaunch its failed capital raising exercise after appointing a new set of bankers. In October 2017, the bank launched a digital wallet known as Yes Pay, integrating with BHIM and UPI. On 3 November 2017, Yes Bank signed a MoU with the government to provide financing for food processing projects.
2020 moratorium
On 5 March 2020, the Reserve Bank of India announced that, in the interest of its customers and depositors, it would suspend and supersede Yes Bank's board and impose a 30-day moratorium on its operations. The RBI cited Yes Bank's failures to raise new funding to cover its non-performing assets, inaccurate statements of confidence in its ability to receive new funding, and its underreporting of its non-performing assets, among other factors, as the impetus for this moratorium. Customers are being limited from withdrawing more than from their accounts, except in certain exceptional circumstances. RBI governor Shaktikanta Das stated that the matter would be resolved "swiftly"; Finance MinisterNirmala Sitharaman announced a proposed turnaround plan, under which the State Bank of India would take a 49% stake in Yes Bank and introduce a new board. On 6 March 2020, ICRA downgraded the rating of Yes Bank's in core bonds to a "D" rating, while Moody's downgraded them to "Caa3". On 8 March 2020, Yes Bank founder Rana Kapoor was arrested by the Enforcement Directorate under charges of money laundering. The moratorium caused major disruptions to e-commerce in India, due to a number of prominent services and online stores having used Yes Bank as its payment provider for UPI. Some services using Yes Bank in tandem with other payment providers have seen fewer disruptions. On 13 March 2020, the Union Cabinet approved the reconstruction scheme for Yes Bank and that within three days of the notification of the scheme the moratorium would be lifted. During this reconstruction, seven investors infused 12000 crore in Yes bank and Prashant Kumar was proposed as new CEO of the bank. These investors include State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Rakesh Jhunjhunwala, Radhakishan Damani and Azim Premji trust.
