WAS IT ALL WELL FOR YES BANK

RBI has issued moratorium on transactions of new age private sector YES bank and initiated supervision on its health. They also issued instructions to SBI,  the largest public sector bank of the country appointing it's DMD and CFO as administrator and to proceed for a consortium with  other public sector institution like LIC as a lead bank to buy shares of YES bank and for a probable merger of  the bank.  The bank crushed its 40% of market exposure of it capital and reserves. For depositor the threshold for withdrawal is made RS 50k daily and in case of serious emergency like medical or marriage etc the threshold extended up to RS 500k.
But, if one goes for an analytical review of the overall health status of this bank it is revealed that there are multiple reason for arising such situation.
If we go back to  the year 1999 we will find that one ROBO finance was formed in India  by three individuals headed by Mr Rana Kapoor under ROBO bank of Netherlands and by 2002 it has received approval from. Central Bank to start commercial banking operations.  By the year 2005 the bank issued IPO of Rs 300 crores and started its journey.  Soon the bank started sanctioning high value loans. It is also found that CEO Mr Kapoor was very liberal in sanctioning high net worth risky  loans and YES bank became one of top banker in country by second decade of this century.
Under deregulated system of interest rates YES bank offered even 7% interest on CASA deposits whereas the rate of other public sector banks during same period was about 3.5%to 4%
The value of the bank reached in its crescendo during 2017 when it's madcap investment above 90000 and its valued in BSE SENSEX for Rs394. But it's balance sheet in 2017 shown a huge NPA of Rs 6355 crores. The bank suffered huge investment failure and RBI did not allow it's CEO Rana Kapoor to continue at the helm of affairs and the bank under new CEO was due for getting new investment for US$ 2billions which they failed and bank could not declare it's Q3 of 2019  up to February 2020.  The bank wanted to sell its chunk of shares held by promoter Mr Rana Kapoor  but he declined this as he kept this for his daughter. On Mar 5th 2020 it's mdcap came down to a a crushing 3998crores only and  the bank which rose up to RS 394 in SENSEX  also crushed  to Rs 17 a fall of 91%.
In this imbroglio, RBI had no other way to intervene by superseding it's board of directors and act upon.Under instruction from authorities of Central Bank,  Mr Prasanta Bhusan,  CFO of SBI has started taking the stock of the situation and hopefully financial hiccups in YES bank will be over soon.