Statsguru: From SBI to ICICI Bank, lenders come to YES Bank's rescue

The bank, however, could not hide its bad debt under the carpet for long as RBI auditors forced all banks to disclose their bad debts

The problem at YES Bank was not so apparent till the Reserve Bank of India (RBI) refused to grant an extension to its managing director and chief executive officer Rana Kapoor, back in September 2018. The bank board then hired Ravneet Gill of Deutsche Bank to replace Kapoor. However, the problems started emerging as it struggled to raise capital. The lender started shrinking its loan book since March 2019 (Chart 1), but deposits remained healthy (Chart 2) as the general public was sure that, despite the troubles at the bank, they won’t fail.

The bank, however, could not hide its bad