Friends, if you have shares of Yes bank
Or you have a bank account there
Maybe today you are in a panic mode
You might not understand what to do
How should I react at this time?
So that's why I have brought a video today itself so that I can give you an overview
That if you are invested in Yes bank
Or if you have a bank account there, what should you do
Why shouldn't you panic
And how you can plan to get out of this situation
I, Jagdeep Singh, welcome you to the Groww channel
Today, we are going to talk about Yes bank
But before that
Yesterday, 5th March
When Dow Jones, the US stock market went down by 1000 points in one day
Then on the morning of 6th March, the Indian market
Even Nifty, opened at less than around 3% in one day
Nifty, which was a strong support mark of 11,000
It broke and went down
In the midst of that, another negative news came out
That RBI is taking its control over Yes bank
And says that they are going to control Yes bank now
Because of which they said that if you have money in Yes bank right now
In one month, you can withdraw only upto Rs. 50,000
Apart from this, there were a lot of people who had bought the share of Yes bank
Yes bank was considered a very good growth story
So a lot of people had the hope that it would bounce back
Because of which people continued to invest here
And the situation today, if I talk about investors
Investors are trying to figure out how they can sell their shares
So first, I would like to give you a background on Yes bank
Where did this growth story start from?
And how this bank, which at one time was compared with HDFC
And it was said that this bank in the coming time will become the second HDFC
Now it has reached the point of closing
So first let us talk a little about the background
Then we will talk about your invested amount in Yes bank
If you are thinking of getting out of it, or you are putting a lot of sell orders in the market
And still your share is not being sold
How can you get out of this share if you have thought about it
Apart from this, if you have put money here, you have a bank account
Then how can you plan here
So if we talk about Yes bank, it was one of the most preferred banks for investors to invest in
And Yes bank started to show a lot of growth
Rana Kapoor showed a very good growth story of Yes bank
Because of which a lot of people started investing here
Not only retail investors but a lot of mutual funds also invested here
Because this bank gave very good returns
Because of which this bank, at one time
Reached the level of 400
But after that the news came out that this bank, to show excessive growth
Invested a lot of its money in risky assets
Because if you lend your money
Where there is a higher risk, you get higher returns
There you get a higher interest rate
Because of which even Yes bank started investing in such assets
In such corporate companies
That were a little risky
But they gave higher returns
If they got higher returns, they showed more profits
If the investors saw higher profits
More investors invested here
Because of which its share price started to go up
Apart from this, whenever a bank lends its money to someone
It is very important for them to report their NPA
Non performing assets
About which I have told you many times
If you have given your money somewhere and for the chances for it to come back is very less
You have to book it as a loss and show it in your NPA
And at that time it happened that Yes bank started under reporting its NPA
The news of which reached RBI and they said that
When RBI looked into this they found out that Yes bank has under reported its NPA a lot
Because of which there was a big problem here
And Yes bank started to come down
After this another news came out because of which Yes bank went down further
And that news was that Rana Kapoor had to leave his MD position
And in his place another MD will come
After which people's confidence started shaking
And this bank's share at one time, came down a lot
After him, the MD that came was Ravneet Gill
He said that he was going to turn the bank around and bring it back to its golden days
Because of which Yes bank's share which at one time touched 140
That came back to the level of 200
Because even then when the quarterly report of Yes bank came, they again reported a loss
They said that their NPA is very high
After which, this share came down further
And as it came down, it reached the level of 50 or 60
After this Ravneet Gill tried, that Yes bank is a bank and a bank has to take a lot of money
To fulfil its liquidity needs
After this Ravneet Gill said that Yes bank is going to take some money and he did a QIP as well
But that QIP was very small
But because of that there was hope among the investors again
That if Yes bank is still getting money
Then it is possible that Yes bank will raise money again in the coming time
And when Yes bank raises a good amount of money
It will go back to its golden days
That was just left as hope and Yes bank was unable to raise its money again
This was about how Yes bank came down until now
But now I will come to today, about which you might be very interested
If your money is deposited here, what should you do?
There are a lot of cases when you have gone on netbanking and tried to remove the money
But you weren't able to remove it
In the same way, if you go to the bank, you must know that there is an upper cap that has been placed
That from one bank account, in one month, you can only make a withdrawal of Rs 50,000
But if there is an extreme case here, if you have a health emergency
Or if it is a matter of higher education then this cap increases from Rs 50,000
And reached 5 lakh, you cannot withdraw more than this
But we will assume that you cannot withdraw more than 50,000 in the current scenario
That what should you do here?
So I will compare this to another case of another bank which happened a few days ago
And that happened with PMC bank
The same thing happened with PMC bank that the liquidity concern increased a lot
Because of which RBI superseded the board of directors of PMC and placed a moratorium
And they said that people will not be able to withdraw more than 50,000
So the same thing happened in the case of Yes bank
So if you have deposited your money in Yes bank
You can withdraw only Rs 50,000 in the current scenario in one month
Apart from this, you must know that if you have made an FD somewhere
On that RBI gives you an insurance
Until some time ago, RBI gave you an insurance only until 1 lakh
Which means that if the bank gets liquidated and is unable to pay you back
Consider that if you made an FD of 50 lakhs
Your insurance was only of 1 lakhs
But in the recent budget that amount was increased to 5 lakhs
So RBI is saying again and again that you have no reason to panic
The only reason the withdrawal limit has been placed now is
That people don't panic because when there is a situation like this
Retail investors like you and I, the common people
They go to the bank and get their money withdrawn
Because of which all the money leaves the bank
So if there are any chances of the bank becoming stable again
Those chances get completely ruined
So even in the case of PMC the government initially put a limit
But as the situation of the bank got better
That limit was increased
So here even in the case of Yes bank, RBI has said
That you have no reason to panic
Your money is safe in Yes bank
But currently, you can remove only until 50,000
So the second assurance I would like you give you that sometime ago
There was talk in the budget of an insurance upto 5 lakhs
You have no reason to be afraid there, you get insurance on a deposit upto 5 lakhs
In the FD of any bank
If you have money there, your insurance is safe
But you have no other reason to panic either
In a few days, the liquidity position will be fine
You can remove all your money from here
Now let us talk about investors
About which you might be very interested, that you are investors here
And what are the kinds of investors here
Who are very impacted by the downfall of Yes bank
So whenever we talk about investors
We forget that here there are institutional investors
That have invested in these particular banks
So if I talk about Yes bank
The first case will be retail investors like you and I who have invested here at some point
And the second will be institutional investors
And in institutional investors
The most relevant for us are mutual funds
Which mutual funds had the exposure of Yes bank
Because if mutual funds had the exposure
They will directly or indirectly get affected
If they are directly or indirectly affected
Even people like you and I who have invested in mutual funds, will be directly or indirectly affected
So first I will talk about shareholders
If you would have bought the shares of Yes bank, what will be the situation now?
So if you have bought the shares of Yes bank
Yesterday, that share had gone up more than 30%
But today morning after 9:15
The people who had the shares of Yes bank
They went to sell this
But when they tried to sell it, they couldn't
Whenever they put in the order, it got rejected
So why is the order getting rejected and why are you unable to sell the share?
As I have always told you there are two kinds of shares
First, FNO
That are traded in future and options
And second, non f&o
That don't have future and options
The one that don't have future and options
There the upper and lower circuit is clearly defined which means that one share
Cannot go above or below its upper and lower circuit
But the shares that are in f&o like Yes bank
Yes bank was in f&o
They have a contract for future and options
They don't have a clearly defined upper and lower circuit
But why did the trading stop here?
So the shares that aren't in f&o
They have a pre defined lower circuit of 10%
That is defined by the exchange
If I talk about Yes bank, it was an f&o stock
It doesn't have a clearly defined upper and lower circuit where its trading stops
But the f&o stocks
If they go down more than 10% their trading stops
After sometime, its trading resumes
And when it goes down 5 or 10% its trading stops again
The same thing is happening in the case of Yes bank
That one time when it opened in the morning
When it opened itself it went down by 10%
And then for sometime the trading stopped
When you place the order to sell, it gets rejected
After that again the trading was opened for sometime
Then its share went down by 5%
Then the trading stopped again
In this process, at one time, Yes bank's share
Went down by 55%
So here you are unable to sell
Because there is no trading here, it has no buyers
And whenever there is no buyer in the exchange
The seller is unable to sell
So you have to wait if you want to trade here
I will give you this suggestion
Wait a little and then decide what you should do
But the small news that is coming in the market
That SBI or LIC is going to buy it
That information hasn't been materialised fully yet
There is no clarity here
So based on these small news you should not make your investment decision for this bank
After shareholders I will talk about traders
Yes bank impacts traders in many ways
Now you must be thinking how
If I talk about Nifty, then Yes bank still appears on Nifty
Which means that Yes bank still has a portion in that index
So if Yes bank goes down more than 50% in one day
Even that index is affected
If that index is affected
The people who trade in that index in future and options
Even they are directly or indirectly affected a lot
After this I will talk about a very important topic
How does Yes bank impact mutual funds?
And if you are a mutual fund investor
If you have a direct or indirect exposure in Yes bank
How will your investment get affected
So if I tell you an interesting figure
If I talk about the mutual fund industry
Mainly about debt mutual funds
They had more than 2,800 crores exposure in Yes bank
Which means that they gave a loan to Yes bank
Of more than 2,800 crores
So if your investment is in that particular debt mutual fund
Your NAV will be directly or indirectly affected
If they have taken a hit now
They will have shown a loss from now itself
But if the NAV hasn't taken a hit yet
So there can be a hit in the coming time
If we talk about the mutual fund that has the biggest exposure in Yes bank
There is a mutual fund of the hybrid category
That comes out of the Nippon Asset management company
If I talk about its exposure, then its exposure
Is equal to 8% of its total AUM
Which is considered a very big exposure
So if you are exposed to Yes bank directly or indirectly through mutual funds
Through debt mutual funds, or if you are a shareholder, then you would have been impacted a lot
So your initial loss would have happened by now
You don't have to panic that much now
You should wait for sometime and then decide what you have to do
So if I give some suggestion to the people whose money is in this bank
They should wait for a few days, the withdrawal limit right now is of Rs 50,000
In the coming time it will increase as the bank stabilises
But we have to wait a little for that
You shouldn't make any speculations in this share yet
Because this can be very volatile in the coming time
We made this video purely for educational purposes
We made it for the people who must be panicking or in a lot of tension right now
They should wait for sometime until the picture gets clear
They shouldn't make any investment decision based on a rumour and should wait for sometime
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