Reserve Bank of India had to dismiss YES Bank’s board of directors and take control over it. Finance minister assured depositors that their hard earned money is safe

• Success : Rana Kapoor , a seasoned and reputed banker working in united states thought of starting an independent private bank in India.
• He pooled in his savings and roped in his close relative Ashok Kapoor and a friend ;and took help of a foreign bank.

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• Yes bank: With expertise and strong investment plan of Rana Kapoor; Yes Bank soon earned a name for itself in market. It operated from more than 1200 branches across India and abroad.
• It had good banking professionals and a clear plan . Everything seemed to be too promising and good.[1]

• Somber : All of sudden, Ashok Kapur (Rana Kapoor’s brother in law) died in Mumbai terror attack and thus Bank was left with few promoters.

• Dispute: After few months; business journals reported that bank was involved in serious battle between two promoters. Both parties had gone to court of law for and against having a nominee promoter[2]

• Shortage : Naturally, this was seen as a negative factor by many depositors ;who felt that bank had lost its brand image.
• Many old customers ((depositors) withdrew their money, and bank lost its cash or capital reserve[3]

• Severity : Many finance experts often pointed out that although bank was in bad financial shape ; its promoters did not take any concrete steps. There were reports of gross financial indiscipline[4]

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• Shut down: Finally, Reserve Bank of India had to dismiss YES Bank’s board of directors and take control over it. Finance minister assured depositors that their hard earned money is safe[5]
• Conclusion: Money is not meant to be wasted but worshiped : Proverb
• Pic credits: Google
• Note: Dear Quora,Kindly uncollapse it as it simply follows Quora’s guidelines . It is earnestly not meant to offend any one. Thanks