Economy, asked by semwalanil78, 9 months ago

why yes bank crashed
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Answers

Answered by queensp73
0

Answer:

The RBI averred that the steady decline in the financial condition of the bank had been largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits.

For Yes Bank, this could pose a problem as it struggles with low capital ratios. It recently raised $275 million by selling shares to domestic and foreign investors in a qualified institutional placement (QIP). While this has averted a crisis, it may need more funds later this fiscal.

A day after a sharp fall in its stock price, Yes Bank on Wednesday said the decline was mainly due to forced sale of 10 crore equity shares on the back of invocation of pledged shares by a large stakeholder

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