The YES Bank Story: The Collapse and the subsequent Rescue of an ambitious private bank Vusaya Krrtu Manna Abstract The collapse of a bank negatively impacts and hurts the sentiments and trust of several stakeholders. There are several lessons to be learned from the collapse of any bank. An examination is made through this work to understand YES Bank ~a leading bank with a glorious past. First, the series of events that led to the collapse are examined. It was followed by a discussion on how Government and the Banking Regulator gave a renaissance for the bank. Several takeaways emanate from the YES Bank episode for finance and banking enthusiasts, re- searchers, the banking industry, the central banks, and the Government. The lessons can potentially help in understanding the traits of banks that are head- ing toward a collapse. Keywords: non-performing assets, bad loans, bank moratorium, bank crisis 1. INTRODUCTION YES Bank had a humble beginning as a small private bank. It rose to glory and marched on to become the fourth-largest private bank before a series of problems related to its lending operations was unearthed. The arrest of its promoter on various charges and the failure of the banks to raise adequate funds forced the banking regulator — the Reserve Bank of India (RBI), to replace the old Board with a new one to oversee the day-to-day operations. These steps pro- tected the bank from a total collapse which would have been more catastrophic and would give a negative image of the Indian banking sector. The series of steps that led to the collapse and the rescue mission that followed are discussed in this work. 2. LITERATURE REVIEW Being a crisis story and considering there are several lessons to be learned, Independent Researcher, Perspectives on Business Management & Economics (PBME), Vi- sakhapatnam, Andhra Pradesh, India 530 045; Contact: +91 98495 19188; Email: vijaykitu@ hotmail.com; ORCID: 0000-0002-1680-8210 GITAM Journal of Management Vol.20 No.1 pp 85-114 Jan-Mar 2022 © 2022 GIM, GITAM.86 GITAM Journal or MANAorMENt YES Bank is a topic of interest in academic circles. It has been a case study topic to understand from different dimensions ~ on Banks and their risk management, on the topic of NPAs, and from a retail investor perspective (Ramchandani & Jethwani, 2021). Another case questioned if the bank behaved as such because of its arrogance or negligence (Akhtar et al., 2021). The journey from sustainable banking to “bank run” (Sachdeva, 2021) is termed to be an Icarus event - akin to denoting the business failure of orga- nizations that earlier had phenomenal success in a short period to crash sud- denly (Jawahar et al., 2021), The overall fiasco is termed a corporate governance failure (Banerjec, 2020; R. Deb, 2021; Halage et al., 2021) while (Chouhan & Saraswat, 2021) discussed from the perspective of misuse of the power of the banks. Academicians felt four key reasons led to the YES Bank crisis: NPAs, the Non-banking finance company (NBFC) crisis, administrative issues, and ex- orbitant withdrawals (Sarkar, 2020). CAMEL analysis showed that the bank’s performance was terrible during the crisis period (Sudheer et al., 2021). Asset Quality (Manda & Polisetty, 2018) is reflected by the bad loans of the bank, which were higher than that of other private banks (Bhardwaj & Sharma, 2019), primarily because of inadequate risk management practices (Kumari et al., 2021). The cash withdrawal aspect of the bank amidst the financial failure is examined in (Kumar & Upadhyay, 2021), An examination of potential failure by regulators is studied by (T. Singh & Pathak, 2020). Multifractality can be used as one of the parameters for predicting the banking sector's stability in an examination of the share prices of the bank during the crisis period (Devi et al., 2021). Much research on the bank was done from different aspects before the crisis, particularly by comparing various aspects of the bank with other banks, especially public sector banks. Some research includes - NPA and its determi- nants (Gupta et al., 2020), corporate governance practices (Dipika, 2019), ATM Sevices (Verma, 2014), customer centricity (Bapat & Naik, 2013), and service quality levels (Sirisha et al., 2015), CSR (Kunjukunju, 2020) amongst others. The bank’s approach to business opportunity, societal needs, and the 12 suc cessful years of business are examined by (Pandey et al., 2019). Other topics included its growth choice (Sharma & Varma, 2013) and the expansion of main- stream banking into other financial services (Chu & Arora, 2010). Innovative business strategies of the bank are examined (Vashishta & Chadichal, 2012). Performance comparison with new private banks, such as IndusInd Bank, was done by (Das & Seth, 2018) The research gap emanates from the need to study the series of events that Jed to the collapse and the subsequent rescue chronologically for a better under-‘THe YES Bank Story: THE COLLAPSE ANO THE SUBSEQUENT .... 87 standing of the crisis. The current research work attempts to address the gap. 3, RESEARCH METHODOLOGY ‘The present research work is a Qualitative Assessment. It follows the His- torical Research Method to capture the series of events that happened in the past to understand the situation better and draw inferences from them. Data is collected from published and authentic secondary data sources, including the official websites of Banks and Regulators, stock exchange disclosures, articles from the media, and interviews by the officials that are published in the media 4. THE BEGINNING YES Bank is a Mumbai, India, headquartered private bank founded by bankers Rana Kapoor and Ashok Kapur in 2004. The bank used to exhibit too good-to-be-true financial performance numbers now and then, surprising the industry and investors. Rana Kapoor took over the bank’s operations after his, brother-in-law Ashok Kapur’s tragic demise in the Oberoi Trident terror attacks on November 26, 2008. A legal battle ensued after Rana denied Kapur’s wife, Madhu, and his daughter Shagun Kapur Gogia a Board seat. As a result, the RBI and the Bombay High Court reinstated their position in the bank. 5. THE COLLAPSE The bank worked hard, made good progress, and improved its position in the private banking arena. It positioned itself as an institutional bank, and obviously, its lending was tilted more toward corporate loans. Some of the first cracks appeared in about 2015-2018 after loans extended to Jet Airways and a few other entities tuned bad, and the loans turned into Non-performing assets (NPAs). In September 2018, RBI refused permission to allow promoter Rana Ka- poor as the Chief Executive Officer (CEO) and asked him to step down. The bank brought in Ravneet Singh Gill, chief of Deutsche Bank’s India operations, and made him the Managing Director/CEO in March 2019. The RBI approved his appointment for a three-year tenure. In March 2019, the bank was reported to have an exposure of Rs. 102.60 billion to entities classified as high-risk such. as Anil Dhirubhai Ambani Group (Finance), Essel group, Cox & Kings, CG Power, real estate financer DHFL, Essar Shipping, and Mcleod Russel. Sev- eral of these corporates collapsed, some with financial fraud, and have put YES Bank under more pressure. The Enforcement Directorate (ED) arrested Rana Kapoor on money laundering charges. The killer instinct and the personal greed of Rana Kapoor were narrated in the book Yes Man: The Untold Story of Rana Kapoor (Lall, 2021)88 GITAM JouRNAL oF MANAGEMENT Unlisted NBFC Altico Capital was in the aftermath of the IL&FS crisis. Its chairperson Naina Lal Kidwai tendered her resignation, citing that “the bur- den is impossible to keep up.” Altico defaulted in September 2019 for Rs. 19.97 crores of interest income on an external commercial borrowing from UAE- based Mashreq Bank led to a rating downgrade by various agencies. YES Bank has Rs. 450 crore exposure to Altico (Panchal, 2019). Fake rumors are making rounds that Rana is in talks about selling his stake in the bank to PayTM. In its research report on September 30, 2019, IDFC Securities downgraded YES Bank to Underperform (Adajania, 2019). High- lights of the report are: 1. Cut in share target price from Rs. 75 to Rs. 35. There could be higher haircuts due to the slower resolution process. GNPAs could rise from 5% in Q1 to 9.6 percent in FY21e. ‘The top three stressed loans account for 85 percent of the loan book. eee YES Bank is not a PCA candidate, but RBI will not wait that long for a bank as big as YES Bank. 6. CET-1 could fall below the RBI requirement of 8 percent. The deposit- taking ability would get hit. 7. RBI oversight on banks, such as YES Bank, would increase post-PMC. 8. Bank needs capital as much as its current market cap to improve CET! capital by 1 percent. On October 1, 2019, the share price fell to Rs. 32 (down by Rs. 9.45 or 22.80%). Marketcap of the company came down to Rs. 8,161.06 er bringing it to the lower bottom of being called midcap. As many as 40 brokerage firms, in- cluding Jefferies, are reported to have a negative rating on the bank (NewsClick, 2019). 5.1 CEO’s interview and reassurance CEO Ravneet Gill appeared on CNBC on October 1, 2019, and presented some points (CNBCTV 18, 2019a) to reassure the stakeholders, particularly in- vestors. 1. Some sectors are facing headwinds, and hence the correlation between the bank’s operating performance and the stock price got dislocated. a, Separately he said: The bank is heavier by $300 million in the last six to seven weeks, but the stock moved in the other direction.Tue YES Bank Srory: THe COUAPSE AND THE SUBSEQUENT .... 89 The bank is in a better position than it was six months ago, and business is going as usual The resolution process of some bad loans is taking more time though the overall process is pretty satisfactory. Gill said the IDFC Securities estimate of 9.6% GNPA by FY2Ie is exag- gerated. Exposure to IndiaBulls Housing is there, but it is not a large number. The account is standard, and the bank is continuing to get principal and inter- est repayments as usual. The exposure has come down to 30%, secured and well-collateralized. He says he is not feeling concerned about this exposure right now. When questioned if the IndiaBulls exposure is 22 percent of the bank network, Gill said it is not. NBFC sector exposure is magnified on account of a couple of concen- trated loans. Capital coming in will solve many of the issues that are concerning the market, and that will boost investor sentiments. In talks with private equity (PE) clients, strategic investors, and reputed family offices for raising capital. Confident the combination of these three will give sufficient funding to the bank. The bank is not having exposure to the MSME sector. However, the bank’s asset quality has stabilized, and the bank is keeping a close eye on that. Rana Kapoor’s decision to sell is to deleverage himself; the decision is tough and is in the interest of the bank. The promoter stake between Rana and Madhu Kapoor will be close to 13% now. a. Now that Rana’s stake is very low, the bank will be run more like a professional bank and not as a family-run bank. On PMC Bank’s episode and ability to raise deposits, he said: “Because a boat capsizes does not mean a ship capsizes.” It will be naive to com- pare a boat and a ship. Comparing YES Bank with PMC Bank to some research reports is very irresponsible. New retail fixed deposits raised this quarter (Sep 2019) are 39 percent higher than in the last quarter, However, separately, a few reports say: a. The bank added 1.80 lakh new accounts during the quarter. As a result, new deposits are up 4 percent on a QoQ basis90 GITAM Journa oF MANAcemenT b. The bank opened more savings accounts during the quarter than ever before ¢. CASA is the same as last quarter, and the capital will be for the bank's growth (Rebello & Rangan, 2019). 13. When questioned about the stressed book of Rs. 50,000 crores, he reiter- ated that the BB and below loan book is at Rs. 29,000 crores; out of that, a watchlist of Rs. 10,000 crores is culled out. He says he was unsure how the Rs. 50,000 crores number arrived. 14. Upon being questioned if he is leaving the bank, he says it is a privilege to work for the bank and that his team is very focused and motivated. 5.1.1. Clarifications in the press release The very next day, on October 2, 2019, YES Bank made a press release submitted to the stock exchanges on the recent developments (YES Bank, 2019). The press release gave a preview of the upcoming quarterly results. It said: 1. The share price fall on October 1, 2019, was primarily because of the . forced sale of 10 crore shares triggered by the invocation of a pledge on equity shares of a significant stakeholder (Milestone Trusteeship Services Private Limited; Pledged shares of promoter Rana Kapoor). a. After this selling, the holding of Rana Kapoor comes to 0.8%, which is unpledged (CNBCTV18, 2019b). b. The promoter family of the late Ashok Kapoor is reported to have expressed confidence in the management and leadership of the bank (CNBCTVI8, 2019¢). 2. The bank reiterated that its financial and liquidity positions are sound and stable. a. Liquidity Coverage Ratio (LCR) is over 125% as of September 30, 2019, against the minimum regulatory requirement of 100%. b. Retail advances increased. Gross advances stand at Rs. 2.32 lakh crores (September 30, 2019) as against Rs. 2.42 lakh crores (June 30, 2019). c. Bank deposits improved and now aggregate close to Rs. 2.09 lakh crores as of September 30, 2019, As a result, the CASA ratio improved from 30.2 percent (June 30, 2019) to 30.8 percent (September 30, 2019). 3. The bank scheduled an analyst conference call on October 3, 2019Te YES Bank Srory: THe COLLAPSE AND THE SUBSEQUENT .... 91 Figure 1: The share price of YES Bank from 2006 to 2021 Data Source: Screener.in; Data is plotted based on the closing price of share from NSE 5.2 CFO Rajat Monga’s resignation The Senior Group President and former Chief Financial Officer (CFO) Rajat Monga resigned, Gill confirmed in the Conference call (PTI, 2019). Mon- ga has been with the bank since its inception, the #2 long-term with it, and a staunch lieutenant with Rana Kapoor. “Rajat decided to move on. For the past two years, he has been carrying many loads and needed some time off. So, he decided to leave,” Gill said. The possibility of Monga taking a sabbatical was also discussed, but he decided to move on. “He just felt that he was at that stage of life and career where he needs to step back, reassess his future course person- ally and professionally,” Gill said. 5.3 Worries about Indiabulls group exposure On October 2, 2019, Business Today reported YES Bank is the most vul- nerable to the Indiabulls group because it has exposure to the group that con- stitutes one-fifth of its net worth (Pratap, 2019). Citing a Macquarie Research report, the article said YES Bank’s exposure could be Rs. 6,040 crores. Gill said the exposure to Indiabulls Housing is not a concern (Dhanjal et al., 2019) and that the payment due from Indiabulls Housing due by September last week is honored and that the account is standard and operational, In addi- tion, he said the court issues with Indiabulls and RBI restrictions on Lakshmi Vilas Bank (LVB) with which Indiabulls Housing wishes to merge is not worri- some for the bank.92 GITAM Journal oF Management 5.3.1, Fake WhatsApp Message ~ Bank responds strong ‘A fake WhatsApp message was found to be speaking the wrong message in various groups. The message carried a link to a Business Today article whose title reads, “Banks’ exposure to IndiaBulls Group at Rs 27,580 crore” (Pratap, 2019). Perhaps the person who read the title of the article alone misinterpreted and started a dominion effect wherein one member forwards the message to another blindly. The rumors are severe and can cause unwanted panic among depositors and investors. Figure 2: Fake messages making round in social media Banks’ exposure to IndiaBulls Group at Rs 27.580 crore Out of all the lenders, Yes Bank is most vulnerable equivalent to a fifth of its net worth ‘www businesstoday.in Yes Bank! due HUGE HUGE exposure to IndiaBulls(27,580 crores), the Bank may get closed soon! Employees already started leaving the Bank! What an unfortunate end for a Bank that was darling in the stock markets few months back! Looks like the entire market itself is fraud, not just Banks alone) https://www.businesstoday.in/current/corporate/banks-exposure-to- indiabulls-group-at-rs-27580-crore/story/382646.htm! > Data Source: businesstoday.in YES Bank, however, and rightly, has taken this message seriously and has filed a complaint with the Mumbai Police and Cyber Cell reading the spreading of the message. The bank requested the authorities to form a multi-disciplinary team of experts to detect the message’s origin and assess the short-sell positions such accused persons held either directly or indirectly. A press release copy was submitted to the stock exchanges on October 6, 2019. The bank also tweeted the same on its official Twitter handle. 5.4 Soothing developments 5.4.1, RBI sources say YES is stable In an exclusive report, ET Now’s Nayantara Rai said an RBI source said that YES Bank is very much stable, that there is no reason to worry, and that the bank is meeting all the norms comfortably at the moment (CNBCTV18, 20194). ‘The management has come out with an accurate picture of asset quality, and the bank is in touch with RBI for capital raising. RBI is not considering merging‘THe YES Bank Story: THE COLLAPSE AND THE SUBSEQUENT .... 93 YES Bank with a Public Sector Bank (PSB). Rana Kapoor’s holding is less than 1 percent No pressure to merge with PSB CEO Gill said that the regulator RBI and the Finance Ministry wanted it to be a strong and independent financial institution and that there are no pres- sures on it to merge with a Public Sector Bank (PSB) (FE Bureau, 2019). 5.6 Capital raising plans and some positives 5.6.1. Capital rising to be sooner than the market expects The $1 billion to $1.2 billion capital raising plan would be done in one shot, and it will happen sooner than the market expects, Gill is reported to have told. Jaikishan Parmar, an Analyst with Angel Broking, feels that the bank can raise capital sooner or later if it can overcome asset quality issues and focuses on bank retail deposits. Private equity investors, technology companies, and family offices ex- pressed their interest. It appears that private equity investors wish to have a board seat and rights in the company, which might require amending the Ar- ticles of Association (AoA). Gill said the Board is united on raising as much capital as needed (Surab- hi, 2019). In an ET interview, when questioned if anyone is interested in acquir- ing a 26 percent to 50 percent stake in the bank, Gill said each of the investors is interested in a large chunk and that the regulator will have to take the call. 5.6.2. What if YES Bank cannot raise capital? Rayneet Gill, in his conference call scheduled before the stock markets opened for the day, reassured about the bank’s operations. The stock gained 33 percent on the same day, October 3, 2019 (ET Bureau, 2019). Now that the overhang related to pledged shares is over, investors seem to be upbeat. The bank’s USS477 million 3.75% February 2023 bond was quoted at a cash price of 82.40/84.35 on Thursday last week, up from an all-time low of 80.5 last Wednesday, according to Refinitiv data. An interesting question was posed to Gill in an ET interview, to which Gill replied: 1, The bank reduced the balance sheet and reallocated from wholesale banking to retail banking 2. The growth and liability franchise is decent. 3. CET levels are above comfortable levels.94 GITAM JouRNAL oF MANAGEMENT 4. Capital is for growth, not for existence. 5. Deleveraging continues, and capital creation will happen organically, 6. Will not compromise on asset quality or capital conservation in the quest for growth. There were a few updates on October 4, 2019. 1. ET carried an article on whether the shares’ two-day bounce back is sus- tainable (Oberoi, 2019). 2. Abhimanyu Sofat, VP-Research, IIFL, is reported to have said that if the fundraising plans do not materialize within a month, there would be more pressure on the stock. 3. Anusha Raheja, BFSI Research Analyst, LKP Securities, says the bank can raise capital based on the average share price of the last two weeks. This is because it has no pressure to merge with other banks. So now, capital raising will be crucial for the bank, which, if done, will be a big positive for it. 4, Brokerage firm Sharekhan says that even if the bank gets equity infusion at twice the current market price, the same will lead to significant dilution of book value, which will not only be an overhang on the multiples but also impact return on equity (ROE). 5. Vinod Nair, Head of Research at Geojit Financial Services, feels volatil- ity in the stock will come down in the coming few days. Carrying an article on India’s struggling banks, The Economist reported that YES Bank had become an example of all that ails India’s banking sys- tem (Economist, 2019). “Business days now begin in India with a scan of the headlines and then a click to check on the shares of YES Bank, the country’s fourth-largest private bank.”, the article reads. 5.6.3. YES Bank wooing Microsoft? ‘An article on LiveMint.com on October 7, 2019, quoted, “Yes woos Mi- crosoft for a strategic investment”. The stock exchanges sought clarification on this, to which the bank responded by saying it was not aware of the source of the article and, as a matter of policy, would not like to comment on the article. It, however, said, “The Bank, in the usual and ordinary course of its business, con- tinues to explore various means of raising capital/ funds through the issuance of securities to a diverse set of investors, in order to meet its business I regulatory requirements, subject to compliance with prescribed procedures and receipt of statutory I regulatory approvals.”Tue YES Banx Story: THe COLLAPSE AND THE SUBSEQUENT .... 95 Newspapers reported that YES Bank would come up with a $1 to $1.2 billion fully underwritten rights issue by December 2019. The Economic Times reported that the stock is up by 8% on reports that top PE investors and three tech firms are interested, The paper reported the names of TPG, The Carlyle Group, and Farallon Capital as the three PE funds showing interest (ET, 2019), $.7 COO & CMO appointments The bank announced the appointment of Anita Pai as its chief operat- ing officer. Pai was the Senior General Manager and Head of ATM Business, Branch banking Services, and Phone Banking at ICICI Bank. She has also been associated with ICICI Prudential Life Insurance Company Limited and HDFC Limited. In addition, Jasneet Bachal was selected as its chief marketing officer. 5.8 Q2 FY1920 Results announcement 1, Stress remains visible in YES Bank quarterly results released late No- vember 1, 2019. Asset quality worsened as GNPAs rose to 7.39% while NNPAs rose to 4.35%. Bank says it is nearing the end of the NPA rec- ognition cycle. As a result, exposures to NBFC, HFC, real estate, and Electricity sectors are reduced. Telecom exposure at 3% predominantly to two operators. Real Estate exposure might throw up some surprises next quarter, but not much. 2. Bank reported a loss of Rs. 600.08 crores owing to a one-off DTA ad- justment of Rs. 709 crores because of a change in the corporate tax rate regime. This is the second-biggest loss for the bank since its stock market listing. PBT stood at Rs. 122 crores. Figure 3: Total Income of YES Bank from 2013 to 2021 40,000 35,000 30,000 “a : 2013 2014 2015 2016 2017 2018 2019 2020 2021 Data Source: Money Works4Me; Data is in Rs. Crores96 GITAM Jounna of Manncement BASEL-III Capital Adequacy Ratio improved from 15.0% to \6.V%. The tier-I ratio is at 11.5%. CET-I ratio is at 8.7% for the quarter improved from 8% last quarter. Credit cost increased from 32 bps to 69 bps. “Unbudgeted and unexpect- ed credit events like CG Power, Altico Capital, and other cases, along with delays in the resolution of two cases, are adding to our credit com reassessment.”, Gill said. Provision Coverage Ratio remained the same at 43.1% during the quarter compared to the previous quarter. As promised, the bank is increasing the retail banking business while re- ducing the corporate banking business. CASA improved to 30.4%. There is an 18.6% YoY increase in Retail TDs. Headcount in retail banking in- creased by 2,466. Bank confirmed a North American family office investor is interested in infusing the US $1.2 Bn and waiting for regulatory approvals. There is a non-disclosure agreement with the investor, and the binding offer is valid until November. The North American investor, with multi-billion- dollar assets, has invested in financial services and energy assets in other countries. The bank sought SEBI approval before confirming with the exchanges. This single direct equity investor has the full capability to infuse the funds, and the names in the media are mere speculation. The Board’s capital raising committee will be meeting next week, and once they approve the offer, the name of the office will be disclosed. Additional global investors are also ready. The combined investment from three investors will be close to $3.05 billion. Also, having multiple offers from domestic and international investors — including two of India’s largest financial companies and two of India’s well-respected entrepreneurs. This can be $350 million. UPI transactions crossed | billion during the quarter. Half-year UPI trans- actions count more than the total of last year. Book Value came down from Rs. 114.3 last quarter to Rs. 109 now per share, reflecting some headroom from the current market price. About a housing-finance company in the news where reports of funds are alleged to have been diverted, the bank exposure is in the form of bond investment, and the price is taken on mark-to-market rates.Te YES Banx Stony: THe COLLAPSE AND THE SUBSEQUENT .... 97 Figure 4: ROE of YES Bank from 2013 to 2021 30 20 . i ie ea a 5 7 -70 _ 7: 2013 2014 2015 2016 2017 2018 2019 2020 2021 Data Source: MoneyWorks4Me 5.9 Call buyers to make it big? Reports of call buyers reaping big retums because of the sudden rally in YES Bank are making rounds. The option premium for an Rs. 65 contract was up 270 times at the day’s high. 5.10 Is DBS interested in acquiring a 51% stake? CNBC TV 18 (via IANS) is airing news that the Government of Singa- pore is negotiating with PMO and RBI for DBS to acquire a 51 percent stake in YES Bank.' Current RBI rules say that a bank can acquire max 10% stake in another bank except in exceptional conditions after RBI approval. On November 2, 2019, IANS carried an article that a DBS spokesperson said that DBS’ interest in acquiring a stake in YES Bank is baseless. 5.11 Updates on bids CNBC TV 18 is reporting some more insights into bids: 1. The announcement of the binding bid was made on the day before the result due to legal & regulatory requirements 2. Only legal, due diligence, or regulatory diligence is pending on non-bind- ing bids.98 GITAM Journal oF Manacemenr Eight investors have shown interest; Have received bids worth $1.5 Bn The capital committee will decide on the best combination of fundraising for the bank Got interested in $3 billion from investors & family offices. RBI made exceptions with respect to a single investor holding a majority stake in a bank 5.12 Analysts reports post Q2 FY1920 results MORGAN STANLEY ON YES BANK: ET NOW + Maintain Underweight, Target at Rs. 40/share + Net stressed loans at >150% of CET 1 & rising + Cut price target to Rs. 40 after Q2 + CET | remains low & net stressed loans rose 15% QoQ + PPoP to come under further pressure against this backdrop NOMURA ON YES BANK: ET NOW, Maintain Neutral, Target at Rs. 63/share * Weak Q2, pain to continue for YES Bank + Capital raise could resolve near-term solvency issues + But the path to recovery looks challenging CLSA ON YES BANK: ET NOW + Maintain Outperform, Target at Rs. 75/share + Target cut from Rs. 110 to Rs. 75/share + Earnings headwinds expected to continue + Balance sheet consolidation likely until capital-raising 5.13 Updates of November 2019 ‘Ace investor Rakesh Jhunjhunwala was reported to have bought 1,29,50,000 shares of YES Bank in a bulk deal at Rs. 67.10 on November 4, 2019. On November 29, 2019, YES Bank made a routine disclosure on Related Party Disclosure Edelweiss gave a buy rating for the stock with a target price of Rs. 101 in its Braveheart series.‘The YES Bum Story: Te COUAPsE ano THE SUBSEQUENT... GO . The YES Bank has put the decision on the allotment to Citax Holdings and Citax Investment Group for the final discussion in the next board meeting. Readers may recollect that the offer from Citax is close to $500 million. “The binding offer of USD 1.2 billion submitted by Erwin Singh Braich/SPGP Holdings continues to be under discussion”. 5.14 Reasons for marquee investors staying away MoneyControl cited five reasons that are keeping marquee investors away 1. No relief from stressed assets 2. Regulatory lapses 3. Liquidity under pressure 4. Capital woes unlikely to end soon 5. Legacy under threat 5.15 SEBI exemption for QIP On December 13, 2019, MoneyControl cited a report that YES Bank management has sought an exemption from SEBI for doing its second QIP im less than six months. SEBI regulations do not allow a listed company 10 do 2 QIP in 6 months. YES Bank raised Rs. 1930 crores via 2 QIP back in August 2019. Technically, the bank cannot do a QIP before February 2020. YES Bank made an exchange filing on January 8, 2020, that the Board will meet on January 10 to “discuss and consider raising of funds by issue equity shares or depository receipts/ convertible bonds/debentures or any other equiry- linked securities.” 5.16 Some negatives 5.16.1. Coffee Day Enterprises waits for YES Bank nod Business Standard reported that Coffe Day Enterprises Limited (CDEL) is waiting for YES Bank approval for Global Village Tech Park. CDEL decided to sell its stake in the tech park venture to Blackstone and realty firm Salarparia Satva Group for Rs. 2,700 crores to repay the debt of CDEL. The process is likely to come in the second week of January 2020 (Mobapatra & Mishra, 2019). 5.16.2. Rana Kapoor & YES Capital shareholding becomes zero YES Bank, in its stock exchange filing, said that Rana Kapoor and YES Capital had brought their holdings down to zero. The other promoters Madhu. Kapoor and her firm, continue to hold 6.87% and 1.46% in the bank. Public100 GITAM Journal oF MaNacement shareholding is up from 86.95% (Sep 2019) to 91.67% (Dec 2019). FPI holding from the bank has come down by 265 to 238 An exodus of large domestic and institutional investors has dented inves- tor confidence, and it will be more challenging for the bank to find an investor, says a banking expert (Laskar, 2020). 5.16.3. Audit Committee Chairman resigns Uttam Prakash Agarwal, an Independent Director and the Chairman of the Audit Committee, resigned on January 10, 2020, ahead of a crucial board meeting. The Nomination and Remuneration Committee of the Board is said to have received the resignation letter and taken it on record. Mr. Agarwal is a Chartered Account by profession and served as the for- mer President of ICAI. He took up the Board Membership of the Bank and the Position of the Chairman of the Audit Committee on November 14, 2018, after the previous Chairman Vasant Gujarati stepped down. There are several versions and debates in the media about this. Though the actual reasons for his resignation are not revealed, reports say he expressed dissatisfaction at how things are working in the Bank, particularly the conduct of Ravneet Gill and a few other members from the senior management and in particular about the processes followed in raising of capital. It is said that his dissent notes are put in writing from time to time in the minutes of the meeting. Sources say Agarwal and a few others are constantly putting hurdles at Gill in his moves to clean up the bank, Another version airing in the media is that the RBI asked the bank to check on the “fit-and-proper’ status of Agarwal and that the bank is seeking legal opinions and is all set to discuss the topic, amongst other things, at the Board meeting to be held on January 10, 2020 (ET Bureau, 2020a). 5.16.4. . YES Bank acquired a 29.97% stake in Rosa Power. . On January 15, 2020, there was a report that the bank had called for an EGM about fundraising. . On January 15, 2020, YES Bank made a media statement about the li- quidity and stability of the bank. It said that the bank’s Capital Adequacy Ratio is well above the regulatory requirements and is continuing its ef- forts to strengthen financial stability. + On January 15, 2020, YES Bank acquired 10.25% shares of SICAL Lo- gistics Limited on the invocation of the pledge. inor business updatesTue YES Bank Story: THe COLLAPSE AND THE SUBSEQUENT .... 101 + On January 28, 2020, Rs. 5.7 crore worth of shares of Reliance Power is sold in open market transactions by the bank. NSE reported the sale of 3,02,59,855 shares, constituting a 1.07 percent holding of the total shares of Reliance Power at an average price of Rs. 1.91 per share. + On January 28, 2020, India Ratings and Research (Ind-Ra) maintained YES Bank Ltd’s Long-Term Issuer Rating of ‘IND A’ on Rating Watch Negative (RWN) and withdrew its Short-Term Issuer Rating of ‘IND AI” The key rating drivers mentioned are: © Delays in Capital Raising; Uncertainty regarding Quantum and Tim- ing © Concurrent Credit Migration in Certain Exposures © Business Model Could Evolve; Settle at Lower Non-Interest Income Levels © Liquidity Indicator — Adequate + On January 30, 2020, the bank disclosed selling 15,66,909 shares of SI- CAL Logistics Limited, which is 2.68% of paid-up capital in various tranches, the last being on January 29, 2020. . On January 23, 2020, Bloomberg Television reported that State Bank of India Chairman Rajnish Kumar said in Davos, “YES Bank is a significant player in the market with an almost $40 billion balance sheet ... I have a feeling that it will not be allowed to fail. ... Because a bank of that size, if itis allowed to fail, there’s a problem ... And I am sure that some solutions will emerge.” (Bloomberg, 2020) + Inearly February 2020, the bank engaged Cantor Fitzgerald (led by for- mer Deutsche Bank global co-CEO Anshu Jain), IDFC Securities, and Ambit Capital to help it raise as much as $2 billion. The shares closed up 14% as investors cheered up the move. 5.17 Shareholders approve capital raising In an exchange filing on February 7, 2020, YES Bank informed that the shareholders passed the Ordinary resolution to increase authorized share capital and consequent alteration of the capital clause of the Memorandum of Associa~ tion and the Special resolution to authorize capital raising through issuance of equity shares or other convertible securities at the EGM. Business Standard re- ported the news and said that the decision to take up the offer from Citax would be taken up at the next board meeting as the “relevant conditions precedent could not be completed as of date.” In addition, the bank said it received an102 GITAM Journal oF MANAGEMENT updated proposal from Erwin Singh Braich and SPGP Holding but decided not to proceed with the offer. The stock closed at Rs. 38.70, up by Rs. 0.15 or 0.39%. On February 10, 2020, G Chokkalingam of Equinomics Research & Advisory, replying to a ques- tion, said risk-taking investors can hold for long-term (2 to 3 years) to possibly recover a significant portion of the cost (ET Contributors, 2020) 6. THE RESCUE 6.1 Taking over operations In March 2020, the Government and RBI were reportedly considering a rescue plan for YES Bank in case it failed its second attempt at raising capital. The proposals include selling some pooled assets to a PSB or selling a small stake in the bank to a PSB to make raising funds more accessible (Ghosh et al., 2020). The report also said that three investors - JC Flowers, Cerberus Capital Management, and Hinduja Group - are going through the bank’s books to make potential investments in it. One source is reported to be saying that the March 19 deadline is “overly optimistic.” An investment of $2 billion is a significant capital and has to be routed through the RBI. Since PSBs are already busy clean- ing their books ahead of the yearly closing, which is barely a few days away, perhaps PSBs might not be that interested in purchasing a stake in YES Bank. ‘Some experts feel the bailout will send a wrong signal and widen economic pain (Kurup, 2020). Finance Minister Nirmala Seetharaman clarified the decision of the Government to save YES Bank. 6.2 Arrest Rana Kapoor Rana Kapoor was taken into custody by the Enforcement Directorate (ED) for issuing loans and taking bribes from DHFL and other companies on March 8, 2020. He is also booked for laundering funds to the tune of Rs. 4,300 crores in black money (Najmi, 2020). The Central Bureau of Investigation (CBI) has conducted raids in seven locations, and on March 9, 2020, it named Rana Kapoor, his wife Bindu, and three daughters as accused in the DHFL bribery case. The ED seized around ten paintings, including a portrait of Rajiv Gandhi by MF Hussain. The Kapoor family purchased the painting for Rs. 2 crores from the Priyanka Gandhi-Vadra couple. The agency also found a few more foreign properties that belong to the Kapoor family. Former YES Bank CEO Ravneet Gill was reportedly called by the ED at the Ballard Pier office to assist in the probe and submit certain documents (ET Bureau, 2020b). The bank loans to real estate, entertainment, and NBFC sec- tor were in the scanner (Ohri, 2020) apart from the 46-odd firms under Rana’s control (Porecha, 2020).‘Tue YES Banx Story: THE COLLAPSE ANO THE SUBSEQUENT .... 103 The ED is probing into three plush properties in Delhi that might be indi- rectly linked to Rana Kapoor's wife, Bindu Kapoor. The three properties are at 40 Amrita Shergill Marg; 18 Kautilya Marg, Chanakya Puri; and in the Diplo- matic Enclave on Sardar Patel Marg. Bindu Kapoor bought a luxurious bunga- low at 40 Amrita Shergill Marg — a prime location in Lutyens’ Delhi — in the name of her company Bliss Abode Ltd while the other two properties belong to Bliss Villa (Delhi) Private Ltd (R. Singh, 2020). ED feels that Rana was trying to sell his properties to shift his base to the US, UK, or France. Meanwhile, on March 11, 2020, a Mumbai PMLA court extended the ED custody of Rana Kapoor till March 16. The ED told the special court that Rs. 20,000 crores out of the Rs. 30,000 crore sanctioned by Rana Kapoor during his tenure had become NPAs (A. Deb, 2020). PTI says that 44 companies belonging to 10 large business groups amount- ing to Rs. 34,000 crores have turned into bad loans. The list includes the Anil Ambani group (Rs. 12,800 crores) and Essel group (Rs. 8,400 crores). 6.3 Delay in an appearance before the probe Indiabulls chairman Sameer Gehlaut and Kapil Wadhawan of DHFL have cited the COVID-19 outbreak travel restrictions as why they cannot appear be- fore the ED. Gehlaut is reported to have left for the UK before the ED sum- mons were received at his office. This raised suspicion in the minds of ED. ED is likely to question the Rs. 685 crore loan given to Bindu Kapoor in her shell company that has no business. The investigation is also on the angle of quid pro quo (Thakur, 2020). Wadhawan is reported to be untraceable since March 9, when CBI raided his premises but is reported to have told ED that he cannot appear because of Covid-19. Subhash Chandra, a Member of Parliament, is in the ongoing Budget sessions and hence cannot appear in the probe until April 3, when the Parliament adjourns. Anil Ambani, who was supposed to appear in the probe earlier, could not do so and is likely to appear on Thursday. 6.4 SBI and RBI rescue plans SBI said in March 2020 that it would prepare a rescue plan for saving YES Bank and send it to RBI in a week. The proposal is likely to have an invest- ment of Rs. 6000 cr by SBI for a 26% stake and Rs. 5000 cr by global investors for a 23 percent stake. Reports say that RBI Governor Shaktikanta Das and SBI Chairman Rajnish Kumar met and discussed the YES Bank episode on March 9, 2020. It appears liquidity support from RBI for YES Bank is also on plans. The RBl-appointed Administrator Prashant Kumar confirmed YES Bak is getting help from both SBI and RBI.104 GITAM Journal oF MANAGEMENT Monday, March 9, 2020, was the last date for the public to give feedback on the draft scheme. RBI will finalize a report based on the feedback to the Cabi- net for further decision-making. Meanwhile, the Government is reported to have kept a close eye on the developments. 6.5 Moratorium to go away Administrator Prashant Kumar said the Rs. 50,000 withdrawal limit would go off if the reconstruction plan works out and that the administration is working overnight to be ahead of the RBI deadline. He assured depositors that their money was safe and that there was no need for panic. He said that a flight of deposits is possible but will be contained given that SBI is now in the bank’s rescue plan. Prashant feels the bank will return to the growth track in two quarters. 6.6 AT-1 Bonds issue Axis Trustee and Nippon India AMC reportedly moved the Bombay High Court against the RBI decision to write off BASEL-III AT-1 bonds. The bonds, of course, come with a loss absorbency clause which says that in case the bank is, stressed, the bank can write off or convert the investment into equity. However, ICRA says the write-down will impact future issuances of such bonds. On the evening of March 11, 2020, Axis Trustee is reported to have met RBI with a settlement proposal. “The majority bondholders of the ATI bonds, for which Axis is acting as a debenture trustee, have suggested that a minimum. of 170 crore shares be allotted to the existing AT] bondholders in proportion to their current holding of these bonds,” said in its letter to RBI and various other sources. The bondholder appears ready to get Rs. 8500 crore bonds into Rs. 1700 crore equity after taking an 80 percent haircut. Shares of YES Bank opened the day at Rs. 17 and closed at Rs. 21.35, gaining 32% in a day - one in which Sensex tanked 2000 points, and Nifty went below the 10,500 points mark (ET, 2020). 6.7 Resumption of services ‘The bank’s inward IMPS/NEFT services are resumed on March 10, 2020, allowing funds from bank accounts of other banks to be transferred to YES Bank accounts through IMPS/NEFT. In addition, the resumption of inward RTGS services was allowed from the next, allowing the bank customers to pay their credit card bills and loan obligations through RTGS transfers from other bank accounts. RTGS allows payments of Rs. 2 lakhs and above. However, clearing-based activities are yet to be resumed.The YES Bank Sony: THE COLLAPSE AND THE SUBSEQUENT .... 105 6.8 Cascading effects UPI payments service provider PhonePe, which was down because of the YES Bank issue, switched to ICICI Bank. In September 2017, NPCI advised large UPI payment apps to go for a multi-bank approach, the importance of which UPI-based service providers will realize now. The Government of Maharashtra announced in March 2020 that it would close the account of the National Cycle Risk Mitigation Project (NCRMP) lying with Axis Bank at its Nariman Point Branch with immediate effect and shift the money to State Bank of India’s Churchgate Branch upon instructions from the Chief Minister Uddhav Thackeray. Media reports that as much as (11,125 crores of at least three civic bodies were stuck in the YES Bank crisis. Media reports on March 11, 2020, say that ICICI Bank, HDFC Bank, and Kotak Bank are interested in taking an equity stake in the bank, while State Bank of India is interested in giving short-term lending in the form of bulk de- posits (Certificate of Deposit) to YES Bank. On March 11, 2020, former RBI governor Raghuram Rajan said, “YES. Bank had given us enough notice that it has been in difficulty...so there was enough time to put together a plan. ... I hope we have the best available (plan), but I do not want to second-guess because I do not know the details”. 6.9 YES Bank Limited Reconstruction Scheme, 2020 In March 2020, the Central Government approved a scheme allowing the reconstruction of the bank with a capital infusion from the public sector, private sector banks, and some other investors. However, the plan included a controver- sial clause: (8) There shall be a lock-in period of three years from the commencement of this scheme to the extent of seventy-five percent in respect of- (a) shares held by existing shareholders on the date of such commence- ment; (b) shares allotted to the investors under this scheme: The said lock-in period shall not apply to any shareholder holding less than one hundred shares. The capital infusion plan included investments as follows: + SBI: Rs. 7250 crores + HDFC: Rs. 1000 crores + ICICI Bank: Rs. 1000 crores106 GITAM JouRNAL oF MANAGEMENT + Axis Bank: Rs. 600 crores + Kotak Mahindra Bank: Rs. 500 crores * Bandhan Bank: Rs. 300 crores + Federal Bank: Rs, 300 crores + IDFC First Bank: Rs. 250 crores 6.10 New Management Team On March 16, 2020, the bank made an official announcement of the new management team: . Prashant Kumar, former CFO and Dy MD of SBI as the CEO and MD. . Sunil Mehta, former non-executive Chairman of PNB as the Non-Exec- utive Chairman 7 Mukesh Krishnamurthy as Non-Executive Director - Atul Bheda as Non-Executive Director SBI said it would nominate two more Directors. 6.10.1. YES Bank out of key indices YES Bank was removed from the Nifty 50 index and was replaced with Shree Cement. Further, it is also removed from the Nifty 100 and Nifty 500 in- dices, Bank Nifty, too, removed YES Bank because it was not available in F&O contracts. 6.11 New Shareholding Pattern After the capital infusion by various banks by March 2020, the new shareholding structure is as follows: + SBI: 48.21% + HDFC & ICICI Bank: 7.97% + Axis Bank: 4.78% + Kotak Bank: 3.98% + Bandhan Bank and Federal Bank: 2.39% + IDFC First Bank: 1.99% Existing Shareholders: 20,32%‘Tue YES Banx Story: THE COLLAPSE AND THE SUBSEQUENT... 107 Table 1: Shareholding pattern of YES Bank over various periods [Shareholder [Promoters] Fils | DUls | Government | Public Dec-19 8.33 15.17 | 14.21 0 62.29 Mar-20 1.42 1.86 69.17 0 27.55 Jun-20 0 1.66 | 69.11 0 29.23 Sep-20 0 11.16 | 49.28 0 39.56 Dec-20 0 15.01 | 47.34 0 37.65 Mar-21 0 13.77 | 46.71 0 39.52 Jun-21 0 10.45 | 47.1 0 42.45 Sep-21 0 7.92__| 45.87 0 46.21 Dec-21 0 8.17 45.55 0 46.28 Data Source: Screener.in; Infusion of funds by banks in March 2020 has made Dils the largest investor in YES Bank 6.12 Other Updates of March 2020 + On March 14, 2020, YES Bank announced its Q3 FY1920 Results an- nounced. There was an increase in provision coverage to 72.7%, GNPA of 18.87%, and NNPA of 5.97% (YES Bank, 2020). Figure 5: Gross NPA of YES Bank from 2012 to 2021 Data Source: Statista108 GITAM Journa. oF MANAGEMENT . In Mareh 2 wt Edelweiss placed the rating of the bank under review. s Q3 FY20 performance corroborates the need for intervention. It the resolution has been spelled out, but uncertainty around depositor behavior, selling restrictions, and management reshuffle make it tough to project the direction. Medium-term issues pertaining to customers and employees are key risks. 7 YES Bank announced that the moratorium would be lifted and that the bank would resume its complete banking services from March 18, 2020, at 18:00 hrs. . Media reports say that Zee group industrialist Subhash Chandra and In- diaBull’s Sameer Gehlaut were summoned in the money laundering case involving Rana Kapoor. Earlier, Anil Ambani was also called in by the ED. ED is also introspecting Naresh Goyal and Wadhawans in the case. + On March 16, 2020, the Rating agency upgraded YES Bank’s outlook to “Positive.” “We today upgraded YES Bank long-term foreign-currency issuer and foreign currency senior unsecured MTN program ratings to Caal from Caa3 and (P)Caal from (P)Caa3, respectively,” Moody's In- vestors Service said in a late evening statement. Meanwhile, Nomura has suspended coverage, saying the private lender was damaged beyond re- pair. 6.12.1. Reconstitution of the Board On March 17, 2020, Prashant Kumar, the present administrator, and the newly appointed CEO and MD of the bank, said that the Board met yesterday and has approved the reconstitution of the Board. Rajnish Kumar said that the scheme’s only logic is that everybody should be treated on par. He said there was an exchange filing already done that AT-1 bonds have been entirely written down, He would not like to comment further as the matter is sub-judice. The bank aims to recover up to $1.35 billion of bad loans next fiscal (Reuters, 2020). SBI Chairman Rajnish Kumar: Free to sell shares but assured that not one share would be sold in the next three years. He said it must not read too much into today’s price of YES Bank shares. Not against retail shareholders, we are all here to protect shareholders. Dipan Mehta, Elixir Equities, to CNBC-TV18: We must give full credit to RBI, SBI, and all participating banks. YES Bank depositors have been more than reassured by YES Bank that their money is safe. The critical factor in this scheme’s success is depositors’ behavior. JN Gupta, Former ED, SEBI, to CNBC-TV18: “I would agree, there isTie YES Bank Stony: Tie Couapan Ano re auaseournr 100 no need to panic. There has been a flight of depositors from YES Bank, and you need to bring the bank. These depositors must have fled to other banks, and the top four banks are part of the rescue process. YES Bank is a professional, very well-known bank, and it would be easier than any other situation” Prakash Diwan, Market Expert, to CNBC-TV18: “The next big figure J would love to see is foreign investments getting the confidence to come and buy into the bank” Reports suggest the Bombay High Court will continue hearing YES Bank AT-1 bondholder’s plea the next day. The bondholders had appealed against the write-down of AT-1 bonds in the bank’s reconstruction scheme. On March 16, the Bombay HC had said that any write-down of the bank’s bonds would be subject to further court orders. However, YES Bank Administrator Prashant Kumar reiterated that the bank has already filed with exchanges that AT-1 bonds have been written down to zero as contracted under the RBI and Basel-III norms Kumar noted that deposits were the biggest concern for the bank, and it was trying to cut bulk deposits. However, he pointed out that the bank has suf- ficient funding lines to meet any funding requirement. He said the Rs 10,000 crore capital infusion would help meet RBI capital requirement, adding that the next round of fundraising will take care of any additional cap needs. 6.12.2. Lifting of Moratorium All Banking services became operational again as usual on March 18, 2020. Just ahead of the 6 PM opening of the full-scale services, the bank’s on- line services were upgraded and went into a brief maintenance mode, Experts believe this was one of the shortest-ever moratoriums and one of the fastest restructures done in the Indian Banking system. 6.12.3. Madhu Kapur sells stake Madhu Kapur, the single largest promoter of the Bank, has sold 2.48 crore shares out of the 17.5 crore shares of the bank she owns in a block deal at Rs. 65 apiece as per reports of March 18, 2020. Post-sale, her stake comes down from 17.6 percent to 14 percent. About 25 lakh shares of her family (0.098 percent) were pledged with HSBC Investdirect Financial Services India as on March 6, 2020. 6.13 CRISIL rating for Certificate of Deposit Program On March 19, 2020. the bank made a stock market submission that CRI- ‘SIL has rated its Certificate of Deposit Program as CRISIL A2, which means the110 GITAM Journat oF MANAGEMENT instraments have a strong degree of safety regarding timely payment of financial obligations and low credit risk 7. CONCLUSION YES Bank’s repeated failure to bring in new investors and raise funds adequate to meet the regulator norms has pushed it into a tight spot. Moreover, the failure of several NBFCs simultaneously and the consequent arrest of the promoter and founder CEO Rana Kapoor made the bank look like it was in the blink of a total collapse. The RBI timely interfered and brought one of the fastest moratorium packages. The timely infusion of funds from various other Indian banks and the proper management capabilities showcased by the new Board and the Management team rescued the bank allowing it to stand up on its own and survive the near-death situation. However, investors suffered a lot of wealth destruction in the process. Disclosure The author of this report has not received any gains or favors, monetary or otherwise, from any agency, including YES Bank or any other institution, in preparing this report. The author submits that this work is written in his personal and individual capacity only. REFERENCES Adajania, M. (2019). Company update: YES Bank (Underperformer). IDFC Securities. https:// app.researchpool.com/provider/idfe-securities/yes-bank-yesb-company-update-yes- ‘bank-underperformer-cut-tp-to-35-on-more-bad-loan ‘Akhtar, S., Alam, M,, & Khan, M. M. (2021). 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A wliily on performance of YES Honk, Juni Khyat, 11(1), hiipy/Junikhyayournal.in/no 1 Online, 21/70,pat Surabhi, (2019, October 4), Board united on raining an much capital av nesded: Rayneet Gill, Businews Linc, htips://www.thehindubusinenaline,com/money-and-banking/bourd-united- on-raising-avemuch-capital-avenceded-ravnect-gllWarticle29592062.ce0 ‘Thakur, P. (2020, March 19). Indiabulls bows In UK, ways can't join ED probe due to Might bar, ‘the ‘Times of India, hiups,//timenofindin.indiatimes.com/busineww/indla-businenn! indiabulls-bons-in-uk-rays-cant-join-ed-probe-due-to-tlight-bar/articlonhiow/74701679, cems?_witter_impression=truc Vashishta, D, & Chadichal, 8. 8, (2012), An Empirical Study on Innovative Business Strateglen Key 10 Progress in the Emerging Economics with Special Referenes YES Bank Procedia - Social and Behavioral Sciences, 37, 504-513, htipw//dolorg/10, 1016). sbspro.2012.03,315 ‘Verma, K. 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