A brief timeline of Yes Bank's saga

[searchpoint]

@femilon Frequent RBI interruption nahi hota to Rana Kapoor bech khaya hota Yes Bank kabka.

 

[ilovemusic]

@jdimmick This NPA reporting from banks seems dubious, I can't understand the accounting standard behind it .

There has to be a singular structure for bank reporting otherwise I fear there will be no banks left.

Indiabull & LVB are also facing some concerns from RBI

 

[searchpoint]

@jdimmick Also who could be the next Yes Bank?

 

[joahob]

@searchpoint Rm

 

[luyemi]

@jdimmick What about the QIP?

 

[jdimmick]

@luyemi In August 2019 QIP, they raised Rs 1930 crores by selling shares at Rs 83.55 per share, a 4.95 per cent discount to the floor price of Rs 87.90 set by the bank.

I don't think any QIP is going to help Yes Bank with current price levels and no wise institutional investor will put his money on this bank.

 

[luyemi]

@jdimmick The institutions which participated in the QIP bought shares around 83 means they must have seen something in the bank. Is there an agreement of when they can sell their shares.

 

[annie2811]

@jdimmick Now would be good time to start buying yes bank

 

[birdyyyy]

@annie2811

Now would be good time to start buying yes bank

That's what I thought at 91, then at 55, then at 41. I am glad I didn't act upon any of those thoughts.

 

[irrationallove99]

@birdyyyy The problem with banks is that most of their money is owned by others, i.e. they are mostly debt. Hence equity holders come last in the pecking order and if NPAs cross a threshold ( of interest income on total deposits) equity comes to 0. That's why bank shares can be very volatile.

This is my understanding anyways - therefore I should not have invested in Yes Bank at 120 thinking its a good buy - I didn't remind myself of this fact at the time.

 

[jdimmick]

@birdyyyy I think it's heading towards 20-18.

 

[wylted]

@jdimmick Based on technicals or fundamentals?

 

[jdimmick]

@wylted Current fundamentals and anticipated worsening of the same.