Navya writes and speaks about matters that often do not come out or doesn’t see daylight. Defense and economy of the country is of special interest to her and a lot of her content revolves around that.
As many as 44 companies from 10 renowned Indian business groups have reported bad loans of over ₹34,000 crores of the country's fifth-largest private lender, Yes Bank, The Indian Express reported.
The development comes after the Enforcement Directorate conducted search operations at the residence of Rana Kapoor, former CEO of Yes Bank and his family over charges of alleged money laundering. The ED also suspected granting of questionable loans extended to various organisations or entities by the bank.
Of the 44 companies, nine are from the Anil Ambani Group which reported NPAs worth ₹12,800 crore and 16 belong to BJP MP Subhash Chandra's Essel Group which accounted ₹8,400 crore worth of NPAs of Yes Bank.
The Dewan Housing Finance Corporation Ltd (DHFL) were given loans worth ₹4,735 crore while the Yes Bank reported an exposure of over ₹2,500 crore to IL&FS that turned bad.
Yes Bank also reported ₹1,100 crore bad loans to Jet Airways. Kerkar Group and its two companies, Cox & Kings and Go travels, were granted loans worth ₹1,000 crore.
Among other companies, Bharat Infra, McLeod Russel Assam Tea, Eveready of BM Khaitan Group (₹1,250 crore), Omkar Realtors and Developers (₹2,710 crore); Radius Developers (₹1,200 crore) and C G Power of Thapar Group (₹500 crore) also reported shocking NPAs.
Addressing the media on the stressed corporate customers of the private banks, Finance Minister Nirmala Sitharaman, last week had blamed the Congress-led UPA government for the crisis at Yes Bank. It claimed that their decisions in the past had forced the Reserve Bank of India to place the bank under moratorium.
"I wouldn't even mind taking their names as they are in the public domain, and I am not violating any customer's privacy. Anil Ambani Group, Essel Group, DHFL, Infrastructure Leasing & Financial Services Ltd and Vodafone are some of those very stressed corporates to whom Yes bank has been exposed. This is before 2014," the Finance Minister said.
Yes bank did not announce the third-quarter results for a very long time as it looked for fund infusion. The bank, in November 2019, reported a net loss of ₹600 crore for three months to September.
Its total NPAs rose to ₹17,134 crore in the quarter ended September from ₹3,866 crore in the previous year. Net NPAs climbed up to ₹9,757 crore from ₹2,019 crore in the same period.
The net NPAs surged from 0.84 per cent in Q2 FY19 to 4.35 per cent in Q2 FY20. The bank's total outstanding advances stood at ₹2.24 lakh crore in the quarter under review, down 6.3 per cent every year. The private lender also witnessed a decline in total deposits by six per cent, falling to ₹2.09 lakh crore.
To revive Yes Bank the RBI announced that the State Bank of India would acquire a 49 per cent equity stake in the bank last Friday.
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