Misplaced Pages

#172827

64-564: Yes Bank (stylised as YES BANK ) is an Indian private sector bank , headquartered in Mumbai , catering to retail customers, MSMEs , and corporate clients. The bank was founded by Rana Kapoor and Ashok Kapur in 2003. Its network is spread across 300 districts in India and comprises 1,198 branches, 193 BCBOs and 1,287+ ATMs . Among the bank’s major shareholders are the State Bank of India ,

128-523: A high degree of regulation over banks. Most countries have institutionalized a system known as fractional-reserve banking , under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity , banks are generally subject to minimum capital requirements based on an international set of capital standards, the Basel Accords . Banking in its modern sense evolved in

192-412: A bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account. Banks issue new money when they make loans. In contemporary banking systems, regulators set a minimum level of reserve funds that banks must hold against the deposit liabilities created by

256-409: A bank varies from country to country. See the relevant country pages for more information. Under English common law , a banker is defined as a person who carries on the business of banking by conducting current accounts for their customers, paying cheques drawn on them and also collecting cheques for their customers. In most common law jurisdictions there is a Bills of Exchange Act that codifies

320-424: A base of 2 million credit cards by March 2024, issuing more than 50,000 cards annually in recent years. The ownership structure of the bank is diverse, with both institutional and retail shareholders holding significant stakes. The State Bank of India (SBI), the largest scheduled commercial bank in India, is the largest shareholder, holding 23.99% of the shares. This substantial stake underscores SBI's pivotal role in

384-452: A central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), while the oldest existing merchant bank is Berenberg Bank (founded in 1590). Banking as an archaic activity (or quasi-banking ) is thought to have begun as early as the end of the 4th millennium BCE, to the 3rd millennia BCE. The present era of banking can be traced to medieval and early Renaissance Italy, to

448-479: A consortium of eight public and private banks, led by State Bank of India, agreed to infuse capital into Yes Bank. And barely nine months after the imposition of the moratorium, Yes Bank was on the road to recovery. The bank's operating profits and recoveries were sufficient to provide for credit costs and it would not need to consume capital for further operations. On 13 March 2020, the Union Cabinet approved

512-534: A default rating previously. In August 2020, Moody's too had raised Yes Bank's long term issuer rating by a notch to B3 from Caa1. In November 2020, CARE Ratings revised its rating on the YES Bank's infrastructure bonds to 'CARE BBB' from the previous 'CARE B'. It also revised its outlook to 'Stable' from the previous ‘Under credit watch with developing implications’ on the above-mentioned instruments. Yes Bank's Upper Tier II Bonds and Perpetual Bonds (Basel II) received

576-551: A division or department of a bank which deals with individual customers. In the U.S., the term commercial bank is used for a normal bank to distinguish it from an investment bank . After the Great Depression , the Glass–Steagall Act restricted normal banks to banking activities, and investment banks to capital market activities. That distinction was repealed in the 1990s. Commercial bank can also refer to

640-425: A large number of small to medium-sized institutions in its banking system. As of November 2009, China's top four banks have in excess of 67,000 branches ( ICBC :18000+, BOC :12000+, CCB :13000+, ABC :24000+) with an additional 140 smaller banks with an undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy each had more than 30,000 branches – more than double

704-658: A large scale, financing the purchase of shares in the Suez canal for the British government in 1875. The word bank was taken into Middle English from Middle French banque , from Old Italian banco , meaning "table", from Old High German banc, bank "bench, counter". Benches were used as makeshift desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. The definition of

SECTION 10

#1732766263173

768-431: A new set of bankers. In September 2020, ICRA upgraded its ratings on securities issued by Yes Bank Ltd, factoring in various positive developments in the bank's financial profile. Infrastructure bonds and Basel II compliant lower tier II bonds were raised to ‘BBB’ from ‘BB+’. Basel III compliant tier II bonds were upgraded to ‘BBB−’ from ‘BB’. Basel II compliant tier I bonds and upper tier II bonds were upgraded to ‘BB’ from

832-488: A proposed turnaround plan under which the State Bank of India would take a 49% stake in Yes Bank and introduce a new board. The moratorium disrupted multiple e-commerce services whose users were struggling to make online transactions or use popular payment services like UPI. Almost two weeks later (12 days), the bank came out of the moratorium and resumed full-fledged banking operations from 18 March 2020. This came after

896-437: A revised rating of 'CARE BB+' from previous 'CARE D'. Bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans . Lending activities can be directly performed by the bank or indirectly through capital markets . Whereas banks play an important role in financial stability and the economy of a country, most jurisdictions exercise

960-399: A variety of different ways including interest, transaction fees and financial advice. Traditionally, the most significant method is via charging interest on the capital it lends out to customers. The bank profits from the difference between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference

1024-446: Is a bank regulation , which sets a framework within which a bank or depository institution must manage its balance sheet . The categorisation of assets and capital is highly standardised so that it can be risk weighted . After the financial crisis of 2007–2008 , regulators force banks to issue Contingent convertible bonds (CoCos). These are hybrid capital securities that absorb losses in accordance with their contractual terms when

1088-403: Is a list of the largest deals in history in terms of value with participation from at least one bank: Currently, commercial banks are regulated in most jurisdictions by government entities and require a special bank license to operate. Usually, the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits, even if they are not repayable to

1152-431: Is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle . Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance. In

1216-620: The ABN Amro Bank and Harkirat Singh, who had previously worked as the country head for the Deutsche Bank . The Rabobank in the Netherlands held the remaining 75% of the shares in the non-banking financial business. The three Indian promoters each owned 25% of the company. In 2003, it was rebranded as the Yes Bank. It was also the same year that Harkirat Singh resigned due to concerns over the influence exercised by Rabobank in

1280-742: The Federal Deposit Insurance Corporation (FDIC) as a regulator. However, for soundness examinations (i.e., whether a bank is operating in a sound manner), the Federal Reserve is the primary federal regulator for Fed-member state banks; the Office of the Comptroller of the Currency (OCC) is the primary federal regulator for national banks. State non-member banks are examined by the state agencies as well as

1344-585: The Great Depression , the U.S. Savings and Loan crisis in the 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the sub-prime mortgage crisis in the 2000s. The 2023 global banking crisis is the latest of these crises: In March 2023, liquidity shortages and bank insolvencies led to three bank failures in the United States , and within two weeks, several of the world's largest banks failed or were shut down by regulators Assets of

SECTION 20

#1732766263173

1408-501: The Reserve Bank of India (RBI) 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

1472-467: The rating of Yes Bank's ₹ 52,600 crore (equivalent to ₹ 620 billion or US$ 7.4 billion in 2023) in core bonds to a "D" rating, while Moody's downgraded them to "Caa3". In April 2021, India's market regulator SEBI ( Securities and Exchange Board of India ) proposed a fine of ₹ 25 crore (equivalent to ₹ 28 crore or US$ 3.4 million in 2023) on Yes Bank Ltd., stating it had fraudulently sold certain risky bonds without

1536-481: The 15,000 branches in the United Kingdom. Between 1985 and 2018 banks engaged in around 28,798 mergers or acquisitions, either as the acquirer or the target company. The overall known value of these deals cumulates to around 5,169 bil. USD. In terms of value, there have been two major waves (1999 and 2007) which both peaked at around 460 bil. USD followed by a steep decline (−82% from 2007 until 2018). Here

1600-639: The Bank's governance and strategic direction. It has also attracted significant investments from prominent international private equity firms, namely Advent International and The Carlyle Group. These firms have fortified bank’s capital base, bolstering its long-term strategic goals. Their involvement began with one of the largest private capital-raising events by an Indian private sector bank in 2022, positioning them as key stakeholders in YES BANK. Additionally, it commands an extensive retail shareholder base, boasting

1664-529: The FDIC. National banks have one primary regulator – the OCC. Each regulatory agency has its own set of rules and regulations to which banks and thrifts must adhere. The Federal Financial Institutions Examination Council (FFIEC) was established in 1979 as a formal inter-agency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. Although

1728-501: The FFIEC has resulted in a greater degree of regulatory consistency between the agencies, the rules and regulations are constantly changing. Retail banking Banking services which are regarded as retail include provision of savings and transactional accounts , mortgages , personal loans , debit cards , and credit cards . Retail banking is also distinguished from investment banking or commercial banking . It may also refer to

1792-578: The Official Banking Partner for Team India at the Paris Olympics 2024, launching the 'Milkar Jitayengey' campaign and the 'YES Glory Debit Card' for athletes. On May 7, 2024, Yes Bank partnered with Ebanx - a fintech focused on cross-border e-commerce payments to enable payments from India. It has three subsidiaries – YES Securities (India) Limited, YES Trustee Limited and YES Asset Management (India) Limited. On 5 March 2020,

1856-586: The UK, for example, the Financial Services Authority licenses banks, and some commercial banks (such as the Bank of Scotland ) issue their own banknotes in addition to those issued by the Bank of England , the UK government's central bank. Banking law is based on a contractual analysis of the relationship between the bank (defined above) and the customer  – defined as any entity for which

1920-857: The US government-based OPIC and with Wells Fargo to support women entrepreneurs. Yes Bank provides (UPI) Unified Payments Interface facility to allow customers to easily and securely perform various financial transactions from their mobile devices via third-party app providers like PhonePe and Yuva Pay. According to the data shared by NPCI (National Payments Corporation of India), Yes Bank processed 25.94 million transactions amounting to ₹ 148.11 billion (US$ 1.8 billion) through its own UPI app in July 2021. Yes Bank acquired over 24.19% stake in Dish TV , India's largest direct-to-home (DTH) company in terms of subscribers, on 30 May 2020. On Mar 18 2024, YES Bank became

1984-639: The bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows: These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force within a particular jurisdiction may also modify the above terms or create new rights, obligations, or limitations relevant to the bank-customer relationship. Some types of financial institutions, such as building societies and credit unions , may be partly or wholly exempt from bank license requirements, and therefore regulated under separate rules. The requirements for

YES BANK - Misplaced Pages Continue

2048-614: The bank generated ₹ 150 billion (US$ 1.8 billion) via follow-on public offers in July 2020. Yes Bank continues to focus on digital payments, concentrating on its market share in UPI and IMPS transactions while it plans to disburse ₹ 100 billion (US$ 1.2 billion) in retail and MSME loans in Q3 of FY21. 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

2112-401: The bank is structured or regulated. The business of banking is in many common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business . When looking at these definitions it is important to keep in mind that they are defining the business of banking for

2176-416: The bank is to restore, not the same money, but an equivalent sum, whenever it is demanded and money, when paid into a bank, ceases altogether to be the money of the principal (see Parker v. Marchant, 1 Phillips 360); it is then the money of the banker, who is bound to return an equivalent, by paying a similar sum to that deposited with him, when he is asked for it. The goldsmith paid interest on deposits. Since

2240-614: 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 ₹ 1,000 crore (equivalent to ₹ 14 billion or US$ 170 million in 2023) financing for food processing projects. 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. It also partnered with

2304-508: The bank racked up losses and very little income. The bank's management, under the new leadership of Kumar, immediately repositioned itself and dealt with all internal and market related challenges to restore customer and depositor confidence. Under the coordinated efforts of the new board and management, Mehta assured shareholders of a speedy recovery, even as the Reserve Bank of India (RBI), State Bank of India (SBI), HDFC Bank , ICICI Bank , Axis Bank and other banks lent it support through

2368-411: The bank will not repay it), and interest rate risk (the possibility that the bank will become unprofitable, if rising interest rates force it to pay relatively more on its deposits than it receives on its loans). Banking crises have developed many times throughout history when one or more risks have emerged for the banking sector as a whole. Prominent examples include the bank run that occurred during

2432-667: The bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer , EFTPOS , and automated teller machines (ATMs). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits , and by issuing debt securities such as banknotes and bonds . Banks lend money by making advances to customers on current accounts, by making installment loans , and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services, and

2496-533: The capital of the issuing bank falls below a certain level. Then debt is reduced and bank capitalisation gets a boost. Owing to their capacity to absorb losses, CoCos have the potential to satisfy regulatory capital requirement. The economic functions of banks include: Banks are susceptible to many forms of risk which have triggered occasional systemic crises. These include liquidity risk (where many depositors may request withdrawals in excess of available funds), credit risk (the chance that those who owe money to

2560-483: The cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques . Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers in

2624-436: The collapse of the bank, which had an excessive amount of bad loans, the Reserve Bank of India (RBI) took control of it. RBI later reconstructed the board and named Prashant Kumar, former chief financial officer and deputy managing director of State Bank of India , as MD & CEO of Yes Bank, along with Sunil Mehta, former non-executive chairman of Punjab National Bank , as Yes Bank's non-executive chairman. In October 2017,

YES BANK - Misplaced Pages Continue

2688-524: The country’s largest scheduled commercial bank; two global investors viz affiliate of The Carlyle Group and Advent International , among others. Yes Bank has an ESG Score of 74 (on 100) on the S&;P Global Corporate Sustainability Assessment (CSA), one of the highest in the Indian banking industry. It was founded in 1999 by two Indian bankers. Ashok Kapur, who had previously worked as the national head for

2752-423: The cross-selling of complementary products. Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Bank capital consists principally of equity , retained earnings and subordinated debt . Some of the main risks faced by banks include: The capital requirement

2816-408: The customer's order – although money lending, by itself, is generally not included in the definition. Unlike most other regulated industries, the regulator is typically also a participant in the market, being either publicly or privately governed central bank . Central banks also typically have a monopoly on the business of issuing banknotes . However, in some countries, this is not the case. In

2880-757: The fourteenth century in the prosperous cities of Renaissance Italy but, in many ways, functioned as a continuation of ideas and concepts of credit and lending that had their roots in the ancient world . In the history of banking , a number of banking dynasties  – notably, the Medicis , the Pazzi , the Fuggers , the Welsers , the Berenbergs , and the Rothschilds  – have played

2944-589: The funding of these loans, in order to ensure that the banks can meet demands for payment of such deposits. These reserves can be acquired through the acceptance of new deposits, sale of other assets, or borrowing from other banks including the central bank. Activities undertaken by banks include personal banking , corporate banking , investment banking , private banking , transaction banking , insurance , consumer finance , trade finance and other related. Banks offer many different channels to access their banking and other services: A bank can generate revenue in

3008-520: The goldsmiths of London became the forerunners of banking by creating new money based on credit. The Bank of England originated the permanent issue of banknotes in 1695. The Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of the 19th century Lubbock's Bank had established a bankers' clearing house in London to allow multiple banks to clear transactions. The Rothschilds pioneered international finance on

3072-401: The hiring of CEO and executive chairman positions. Yes Bank had been unable to raise capital over the past few years, which led to a steady deterioration in its financial position. This had resulted in potential loan losses, which in turn led to downgrades, which prompted investors to invoke bond covenants, and a withdrawal of deposits by customers. Over the course of the previous four quarters,

3136-678: The historic Yes Bank Reconstruction Scheme 2020. In July 2020, Yes Bank Ltd closed their follow-on public offer (FPO) with 95% subscription, driven by institutional investors. As of 28 July 2020, Yes Bank is an associate of State Bank of India which has a 30% stake in the company. On 21 February 2023, it issued 2,13,650 equity shares to its employees under the company ESOP plan. The bank plans to open 150 branches in fiscal 2024, with 110 branches open as of March 2024. It also plans to expand its range of business lines, adding affordable housing and used car loans to its luxury property mortgage and new car purchase lending segments. It has also reached

3200-406: The issue of banknotes emerged in the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London , who possessed private vaults , and who charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee ; these receipts could not be assigned, only

3264-442: The issue of a bank license vary between jurisdictions but typically include: Banks' activities can be divided into: Most banks are profit-making, private enterprises. However, some are owned by the government, or are non-profit organisations . The United States banking industry is one of the most heavily regulated and guarded in the world, with multiple specialised and focused regulators. All banks with FDIC-insured deposits have

SECTION 50

#1732766263173

3328-409: The largest 1,000 banks in the world grew by 6.8% in the 2008–2009 financial year to a record US$ 96.4 trillion while profits declined by 85% to US$ 115 billion. Growth in assets in adverse market conditions was largely a result of recapitalisation. EU banks held the largest share of the total, 56% in 2008–2009, down from 61% in the previous year. Asian banks' share increased from 12% to 14% during

3392-587: The largest number of retail shareholders in the Indian capital market. With approximately 6.30 million shareholders, this vast base reflects widespread confidence and trust in the Bank's vision and performance. Yes Bank operates in Retail, MSME and Corporate banking sectors from 1,192 branches and 1,301 ATMs and Cash recyclers in over 700 Cities. It offers wide range of differentiated products for corporate and retail customers through retail banking and asset management services. On 5 March 2020, in an attempt to avoid

3456-436: The law in relation to negotiable instruments , including cheques, and this Act contains a statutory definition of the term banker : banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how

3520-769: The necessary warnings and risk assessments. In May 2021, the Securities Appellate Tribunal (SAT) imposed an interim stay on SEBI's order. Yes Bank has equities listed on the Bombay Stock Exchange and the National Stock Exchange of India and bonds listed on the London stock exchange . Yes Bank was listed on the stock exchanges of India after its IPO in June 2005 at a face value of ₹10 and an issue price of ₹35 . Under

3584-479: The new management, Yes Bank has managed to overhaul its risk and governance frameworks while saving itself from reputational risks. The liquidity profile of the bank is well above the required regulatory norms. In June 2021, the board approved ₹ 100 billion (US$ 1.2 billion) of fundraising by issuance of debt securities. In financial year 2020–21, Yes Bank saw a marked rise in deposits at 55% and operating profits at 42% year on year. The recapitalization drive at

3648-420: The original depositor could collect the stored goods. Gradually the goldsmiths began to lend money out on behalf of the depositor , and promissory notes , which evolved into banknotes, were issued for money deposited as a loan to the goldsmith. Thus, by the 19th century, we find in ordinary cases of deposits, of money with banking corporations, or bankers, the transaction amounts to a mere loan, or mutuum , and

3712-455: The past 20 years, American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. This helps in making a profit and facilitates economic development as a whole. Recently, as banks have been faced with pressure from fintechs, new and additional business models have been suggested such as freemium, monetisation of data, white-labeling of banking and payment applications, or

3776-438: The promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were repayable over a longer time-period, this was an early form of fractional reserve banking . The promissory notes developed into an assignable instrument which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default . Thus

3840-487: The purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking. However, in many cases, the statutory definition closely mirrors the common law one. Examples of statutory definitions: Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking ,

3904-503: The reasons for the moratorium. During this period, Yes Bank customers could withdraw only up to ₹ 50,000 (US$ 600) from their accounts for the following one month, except in certain situations like medical treatment, emergencies, higher education costs and obligatory expenses for ceremonies such as weddings (subject to RBI's approval). RBI governor Shaktikanta Das stated that the matter would be resolved swiftly; Ministry of Finance under Finance Minister , Nirmala Sitharaman announced

SECTION 60

#1732766263173

3968-614: The reconstruction scheme for Yes Bank, stating that within three days of the notification of the scheme, the moratorium would be lifted. During this reconstruction, seven investors infused ₹ 12,000 crore (equivalent to ₹ 140 billion or US$ 1.7 billion in 2023) 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. On 6 March 2020, ICRA downgraded

4032-576: The rich cities in the centre and north like Florence , Lucca , Siena , Venice and Genoa . The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. Giovanni di Bicci de' Medici set up one of the most famous Italian banks, the Medici Bank , in 1397. The Republic of Genoa founded the earliest-known state deposit bank, and Banco di San Giorgio (Bank of St. George), in 1407 at Genoa , Italy. Fractional reserve banking and

4096-414: The year, while the share of US banks increased from 11% to 13%. Fee revenue generated by global investment in banking totalled US$ 66.3 billion in 2009, up 12% on the previous year. The United States has the most banks in the world in terms of institutions (5,330 as of 2015) and possibly branches (81,607 as of 2015). This is an indicator of the geography and regulatory structure of the US, resulting in

#172827