Sign Banking PDF Maryland Now

Industry sign banking maryland pdf now

[Music] [Applause] kappa yes Keith really curly hair coaching Institute's code hi loctifas nape a Camacho they other ha so by severe pants or okay make her bad K steady AQ k pendrive course Cassatt of IES Kirika sakthe hai aaj he visit crazed steady iq.com hello my dear friends and welcome to study IQ in this lecture we will be discussing about the east bank issue recently the Reserve Bank of India the banking authority in our country has ordered that the CEO and the managing director of the yes Bank mr. Rana Kapoor must leave his post at the end of January so it has created concerned for the yes bank with this with this order of the Reserve Bank of India the market value of shares of the yes Bank has come down also it has affected the investors so we will analyze what are the reasons for this order of the Reserve Bank of India that the CEO and MD of the yes bank should leave his office by the end of January 2019 we will also see how this pardon has affected the investors of the bank we will also analyze the history and journey of the yes Bank since its establishment we will also analyze the policy reflection of the Reserve Bank of India and the status of public sector banks compared to the private sector banks like the s bank or Axis Bank so let us start first of all let us analyze what was the news or what was the Current Affair the Reserve Bank of India as you all know it is the monetary authority or banking authority in the country it is the effects bank of the country which regulates all other commercial banks in the country the Reserve Bank of India recently ordered that mr. Rana Kapoor he is the CEO chief executive officer and the managing director of the yes Bank yes Bank is a private bank and according to the RBI order mr. Rana Kapoor the CEO and the MD of the yes Bank should leave his post at the end of January 2019 so this came as a response to his seeking to the Reserve Bank for a three-year extension till August 31st 2021 so the CEO and MD of this Bank mr. Rana Kapoor had seek the Reserve Bank of India for a extension of his post for again another three years and we play to that the Reserve Bank of India ordered that he must leave his office by the end of January 2019 to remember that he was in this post for the last 14 years so it is after the 14 years of his in charge he is going to leave the office in the end of January we are not sure whether he will you or not but according to the RBI order he is not permitted to continue we will analyze this issue in detail in this lecture before we move into the impact of this order let us first of all understand what was the journey of the yes Bank since its inception so we will start from mr. Rana Kapoor mr. Rana Kapoor he was a banker in many foreign banks in Asia including the Bank of America Bank of America is a very renowned bank so he even worked in Bank of America so he was basically a banker and remember the narasimham committee recommendations of 1991 the first committee of narasimham which had recommended for the liberalisation of india's banking sector and privatization of Indian banking sector so one important recommendation of narasimham committee which was set up in 1991 the first narasimham committee was that the banking sector of Indian economy should be liberalized more private banks and foreign banks must be permitted to start operations in India so this recommendation was accepted by the government and from 1991 onwards we have seen a liberalisation of the banking sector in the economy so mr. Rana Kapoor was one person who benefited from the liberalisation of India's banking sector so when the government decided to liberalize the banking sector and issue more licenses to the private sector and also the foreign banks mr. Rana Kapoor also applied for a license and he won a banking license in the year 2003 remember that in the year 2003 only two licenses were issued by the RBI one licence was issued to mr. Rana Kapoor and his brother-in-law so it was a partnership so mr. Rana Kapoor partnered with brother-in-law and he won one of the only two licenses that were issued in the year 2003 by the Reserve Bank of India so yes Bank was established after 2003 when RBI issued a license to Rana Kapoor and his brother-in-law and if we look at the growth of the yes Bank we will see that the growth was so rapid and one important factor that accelerated the growth of yes Bank was its corporate lending so they had a policy of aggressive corporate lending most of its loans were provided for corporates and it was through the corporate lending the bank had a rapid growth and in the year 2008 mr. Rana Kapoor Strether in-law who was a partner in the bank he was killed in the Mumbai terror attacks so after his death mr. Kapoor's control over the bank had strengthened and of course he was a very good director because he was able to take the bank's to Heights so his control strengthened after 2008 but the but the last four years if we look at the banking industry the industry itself is affected by mounting NPS weak governance etc so there are many issues in the banking industry in the past four years so in the last four years mr. Rana Kapoor's yes bank also was affected by corporate default why because we have seen that one of the major policies of the yes bank was to lend to the corporates so their corporate lending rates were high and therefore the corporate default levels also went up in the last four years but the yes bank was not ready to reveal the extent of its asset quality problems with the RBA so RBA SN apex monetary institution in the country who monitors every banking institution in the country and remember yes bank had issued license from the RBA so therefore it is accountable to the Reserve Bank of India but what happened with the yes Bank they were not ready to reveal the extent of its asset quality asset quality means the quality of its loans whether they are bad or trust assets or whatever it is the quality of the assets should be properly revealed to the Reserve Bank of India but they were not ready to reveal the extent of its asset quality or the extent of its bad loans to RBI and therefore it came under the scrutiny of the Reserve Bank of India and since yes Bank was under the scrutiny of Reserve Bank of India RBI found out that the yes Bank has underreported its bad loans that means it has not revealed its extent of bad loans or it has underreported and it was by 106 point seven billion rupees so there was an under reporting of bad loans by 106 point seven billion rupees and for that matter the Reserve Bank of India had find yes Bank for rupees 60 million rupees sixteen million fine was imposed from the yes Bank by the Reserve Bank of India but even though all these things has happened the banks market value was very high it is a young bank started only after 2003 but the growth rate was very rapid because of all these reasons the market valuation continued to climb over the past two decades so this is in short the journey of yes Bank now the Reserve Bank of India has ordered that mr. Rana Kapoor who is the CEO Enda and the managing director of the yes bank should not continue in his office after January so how would have been the investors responded to it it is a delicate situation for the investors in the Indian financial market because there is increased uncertainty the our serve Bank of India as well as the government is coming up with new orders new proposals in the banking industry and it creates uncertainty remember it was only recently that the government had ordered for an amalgamation of three public sector banks the Bank of Baroda Dana bank and also the Vijay a bank so it was also a sudden proposal so this creates an uncertainty in the financial sector or in the banking sector and in case of yes bank also there is that uncertain the investors are not sure who will be the successor of Rana kaput so it creates an uncertainty among the investors and as a response to this order of the Reserve Bank of India the shares of the yes bank fell 29 percentage the market value of the banks has suffered we have seen that despite all this issues it was put under the scrutiny by RBI there were mounting defaults in the corporate lending because even despite of all these issues the market value of this Bank was very high but with this order of the Reserve Bank of India the market value of the bank has come down and the shares fell 29 percentage even though the Reserve Bank of India has not explicitly stated the reasons for this move the main reason for this move is that under reporting of bad loans Reserve Bank of India had found out that the yes Bank has underreported its bad loans by almost 100 and 6.7 billion rupees and this under reporting of the bad loans is up first and the foremost reason for such an order issued by the Reserve Bank of India so it is trying to tighten its policies it is tightening its regulations over the other banks now other reasons are weak compliance of the yes bank weak governance which has led to mounting of corporate loan defaults wrong asset qualification is also another reason so because of all these reasons the Reserve Bank of India has ordered the bank's MD and CEO mr. Rana Kapoor to leave his office by the end of January 2019 now is it the only incident or was there any similar move in the past in the banking sector yes five months ago the Reserve Bank of India had made a similar move with Axis Bank also Axis Bank is also another private sector Bank and the Reserve Bank of India has forced the CEO of Axis Bank Shekar Sharma to leave the office by the end of this year so it is not the only order that is issued against a private bank earlier the Reserve Bank of India has done the similar thing early the Reserve Linda has done a similar move against the Axis Bank also so we will understand that the Reserve Bank of India is being tight with its regulations and the reason for such an order issued to the Axis Bank was also under reporting so we understand that under reporting of the bad loans or quality of assets is taken seriously by the Reserve Bank of India from these two incidents now what is the policy reflection that we get from a Reserve Bank of India such orders the RBI determination to impose tough measures to force banks to disclose and resolve their bad loan problems are very much evident from such moves that means the RBA which is the apex bank of the country who monitors the banking system of the country it is determined to impose tough measures that is they are going to take serious actions against banks one reason is for disclosure of the bad loans or the quality of assets and secondly only if there is proper disclosure the bad depth problem can be resolved so bad loans or NPS must be resolved so if a resolution has to take place the quality of the assets must be disclosed so for this the Reserve Bank of India is taking tough measures against private banks and also public sector banks now if we compare the status of public sector banks with the private sector banks in case of bad loans we will see that the status of the public sector banks are worse than the private banks because they account for 2/3 of the bank assets and as a solution for this mounting NPS in the public sector banks the government has promised consolidation in the sector in public sector banks majority of the shares held by the government so public sector banks are government-owned banks and the government has promised consolidation in this matter under consolidation one solution is that larger banks will gain economies of scale and therefore government is going for amalgamation or merger we have already seen two mergers by the merger of the SBA with its associates and now the government has recently proposed the merger of Bank of Baroda dana bank and the v-j a bank so through the smudges and amalgamations the government is trying to create larger banks which can make utilization of the economies of scale and secondly through this amalgamations and mergers large banks will be able to absorb smaller banks or underperforming banks in the example of recent proposal of amalgamation of Bank of Baroda Dana Bank and Vijaya Bank we will see that dana bank was underperforming and it is also a small bank so when this Bank is adopted or absorbed by the other two banks what will happen the amalgamated entity will be more competent and the performance also will improve you can find the PDF of this lecture on my Facebook page thank you kappa yes cathodic array hair coaching Institute's code hi loctifas nape a cannot chat a other ha Tobias we are pants or okay make her bad K steady AQ k pendrive course ke sath of IES key tre kar sakthe hai aaj he visit Korea steady iq.com [Music] [Applause] [Music]