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Yes Bank crisis: Why did the bank collapse?
The Yes Bank faces a crisis of non-performing assets, i.e. loans that have either gone bad or where repayments have been delayed for too long. Partly due to this, Yes Bank's capital eroded. For the last several months, the bank has been hunting for cash in the form of fresh investment. The hunt, however, came up empty. Apart from this, Yes Bank also faced governance issues. Yes bank underreported NPAs to Rs 3,277 crore.in 2018-19. The report also says that the bank's management misled the RBI by indicating to the central bank that talks with investors on pumping in equity were likely to be successful.
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Saswat PanigrahiSaswat Panigrahi is a multimedia journalist
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