The Miraculous Comeback of Yes Bank
- After founding Yes Bank in 2004, Rana Kapoor established it as one of India’s largest private banks, with a market capitalization of $2.37 billion and a Compound Annual Growth Rate (CAGR) of 39.19%.
- During the COVID-19 lockdown, Yes Bank’s market capitalization grew exceptionally to $6.11 billion, with a remarkable CAGR of 264.65%.
- However, in March 2020, the Enforcement Directorate (ED) investigated Rana Kapoor, accusing him of corruption and money laundering. He allegedly received hundreds of crores in kickbacks for bogus loans to DHFL and other underperforming companies, causing the bank’s shares to plummet to an all-time low of ₹10 on April 1, 2024.
- The Reserve Bank of India (RBI) appointed a new Managing Director, Prashant Kumar, on October 6, 2022, and elected a new board for the bank. Under his leadership, the bank introduced new techniques to build customer trust, such as low-yield segments with low risk, like car loans and prime mortgage spaces.
- Yes Bank achieved significant growth, reaching a 2 million credit card base, which was previously low for seven years despite cash crunches.
- CEO Prashant Kumar personally called customers to assure them that their money was safe and in full discretion.
- Yes Bank’s digital channels excelled in deposits, opening 2 lakh new accounts in 2023, a notable achievement during a challenging time for deposits.”