Wondering why the yes bank , which used to be one of the leading private bank failed so badly?
Well, there are many reasons behind it. Today we will see of the main reasons why the Yes Bank Failed so badly.
Yes Bank , which was once India’s fifth largest private sector bank gave loans to all the bad companies ( loss making companies ) , big loans to companies like Jet Airways, DHFL, Cox & Kings, CG Power, Cafe Coffee Day etc.
Here’s a short introduction of the companies to whom Yes Bank gave big loans -:
Jet Airways (India) Ltd. is a bankrupt and grounded multinational Indian airline headquartered in Mumbai, India, which ended all flight operations on 17 April 2019 with its last commercial flight operated by a Jet Konnect Boeing 737 landing in Mumbai on 17 April 2019. Jet Airways became India’s largest commercial passenger carrier with a passenger market share of 22.6 percent from the third quarter of 2010. It was forced to follow suit with its rivals, primarily SpiceJet and IndiGo, reducing ticket prices in the following years, affecting overall performance resulting in significant financial losses. It plummeted to second place behind IndiGo in October 2017 with a market share of 17.8 per cent for travelers.
Its is a housing finance deposit-taking firm, headquartered in Mumbai with branches in major cities throughout India. It was developed to give low-and middle-income groups in semi-urban and rural parts of India access to finance for affordable housing. DHFL is the country’s second-largest housing finance firm. The firm also rents residential and commercial property. DHFL lists among India’s 50 biggest financial companies.
Cafe Coffee Day
Café Coffee Day (CCD) is an Indian coffee chain. It’s parent company is Coffee Day Enterprises Limited. CCD serves 180 crores cups of coffee every year in six nations
Cox & Kings
Cox & Kings is one of the oldest travel company which is still operating. It was established in 1758 and is headquartered in Mumbai and UK. The travel company has its offices in the United States, Netherlands, United Kingdom, United Aram Emirates, China, Singapore, Australia and New Zealand.
Also , I will not forget to mention that it has been found that Rana Kapoor, founder of Yes Bank did a money laundering of INR 4300 Crores.