Yes Bank is oddly named. No bank can say 'yes' to all requests from customers. There are better ways of communicating one's positive outlook than through an ill-advised name.
What is in a name? There are occasions when everything is in a name. What is the bank saying 'yes' to? Subterfuges and shenanigans? Ever since RBI stalled Rana Kapoor's attempts to continue as the bank's CEO, many reports have emerged disclosing borrowings by shadow banks (NBFCs) belonging to the yes group from mutual funds on the security of shares in Yes Bank. These loans have been ploughed back into some companies of the group as equity.
These transactions are not unlawful. But when under a regulatory scanner, any ethically dubious transaction is viewed as an egregious transgression.
These are not isolated transactions. There has been a pattern. There have been marked divergences between NPAs disclosed by the bank and those flagged by RBI. Why did Rana Kapoor take to devious ways when the bank was doing well? Or, was the bank doing well only thanks to these difficult-to-justify methods?
Ashok Chawla could not continue as Chairman apparently because there are some allegations of corruption against him. A whistle blower is supposed to have alleged that the bank's CEO had indulged in corrupt transactions. Coincidental charges against both the chairman and the CEO make Yes Bank more notorious than ICICI Bank. Neither bank was able to deal with the reputation risk adroitly.
Is there a giveaway in names of organisations? Satyam, Global Trust and Yes - all are indicators of qualities these organisations did not possess!
What is in a name? There are occasions when everything is in a name. What is the bank saying 'yes' to? Subterfuges and shenanigans? Ever since RBI stalled Rana Kapoor's attempts to continue as the bank's CEO, many reports have emerged disclosing borrowings by shadow banks (NBFCs) belonging to the yes group from mutual funds on the security of shares in Yes Bank. These loans have been ploughed back into some companies of the group as equity.
These transactions are not unlawful. But when under a regulatory scanner, any ethically dubious transaction is viewed as an egregious transgression.
These are not isolated transactions. There has been a pattern. There have been marked divergences between NPAs disclosed by the bank and those flagged by RBI. Why did Rana Kapoor take to devious ways when the bank was doing well? Or, was the bank doing well only thanks to these difficult-to-justify methods?
Ashok Chawla could not continue as Chairman apparently because there are some allegations of corruption against him. A whistle blower is supposed to have alleged that the bank's CEO had indulged in corrupt transactions. Coincidental charges against both the chairman and the CEO make Yes Bank more notorious than ICICI Bank. Neither bank was able to deal with the reputation risk adroitly.
Is there a giveaway in names of organisations? Satyam, Global Trust and Yes - all are indicators of qualities these organisations did not possess!
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