View on Yes Bank Downfall or Collapse:

In the last few days we all heard about the collapse of the Yes Bank and its create a kind of sensation in the market so here lets understand what actually happen with the Yes Bank.

Financial position:- the financial position of the Yes Bank is declining over the last few years because of its inability to raise capital, the bank was making losses and inadequate profit from last four quarters.

Divergence in Loan:- There is continuous divergence in the figure of NPA given by Yes Bank and RBI audit which create the doubt in the mind of shareholder for the bank and it change the mindset of shareholder for Yes Bank.

Major loan takers :- Anil Ambani Group, Cafe Coffee Day, IL& FS, C G Power, Vardhraj Cement, etc majority of the company which taken the highest amount of loan is themselves a big defaulter in the market which is also one of the reason for the downfall of the bank.

Governance Issues :- The bank has also experienced governance issues and practices in recent years which lead to steady decline of bank, which decline the reputation of the bank in the market.

False Assurance :- Bank management had indicated to the Reserve Bank that it was in talks with various investors and they were likely to be successful but in reality there was no concrete proposal from investors to put the kind of money that the bank required to survive and grow.

Outflow of liquidity :- The bank was facing regular outflow of liquidity which means that bank was witnessing withdrawal of deposits from customers.

Non- serious investors :- The bank was engaged with a few private equity firms for exploring opportunities to infuse capital but due to some reason they are not invested in the bank according to RBI.
https://www.businesstoday.in/sectors/banks/6-reasons-why-yes-bank-collapsed/story/397655.html