Latest news with #YESBank
Kuwait Times
3 days ago
- Business
- Kuwait Times
India's crime agency probes Reliance Group
NEW DELHI: India's financial crime-fighting agency searched 35 locations linked to Reliance Anil Ambani Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source said on Thursday. The Enforcement Directorate alleges the group orchestrated a 'well-planned' scheme to siphon off 30 billion rupees ($350 million) in loans from YES Bank to many shell companies between 2017 and 2019, the source said on condition of anonymity, as he was not authorized to speak to the media. Anil Ambani's Reliance Group entities are accused of paying bribes to YES Bank officials before loans were disbursed, the source said, adding that loan approvals violated the bank's processes. The probe also found gross violations in YES Bank's loan approval process, such as lending to companies with weak financials, backdating credit memos, 'evergreening' loans - issuing fresh loans to avoid labeling assets as non-performing - and misrepresenting financials. A Reliance Group source said YES Bank had granted loans to Anil Ambani's entities after following the due process, and the entire exposure was fully secured. The allegation that bribes were given to secure loans was incorrect, the source said, adding that Reliance Home Finance (RHFL) extended fully secured loans on merit to privately-held companies of Rana Kapoor, the erstwhile promoter of YES Bank. These loans were fully repaid, including interest, the source said. Representatives for Reliance Group and YES Bank did not respond to requests for comment. Several group firms of Anil Ambani, the younger brother of billionaire Mukesh Ambani, have gone into bankruptcy since 2017. YES Bank, from which Anil Ambani group firms had borrowed heavily, was declared insolvent in 2020 and rescued by a group of Indian lenders in a plan approved by the central bank. Japan's Sumitomo Mitsui Banking Corp is seeking a 20 percent stake in a deal that has yet to get regulatory approval. Kapoor was charged with bank fraud by the financial crime agency in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in India's financial capital of Mumbai, according to local media reports. The financial crime agency can now seize or attach assets of Anil Ambani entities as the 'proceeds of crime', said Debopriyo Moulik, a lawyer at India's Supreme Court. However, the group companies can challenge the agency's findings in court, he said. Anil Ambani's group entities have been subject to several regulatory actions in recent years. In August 2024, the markets regulator SEBI barred Anil Ambani and 24 others from securities markets for five years, citing fund diversion from Reliance Home Finance. The markets regulator has shared findings of its investigation on Reliance Home Finance with the financial crime agency, which is likely to investigate a sharp rise in corporate loans granted by the finance company, the source said. Shares of Reliance Infrastructure and Reliance Power fell as much as 5 percent on Thursday after the news of the latest probe. The companies issued similar statements to Indian stock exchanges saying the agency's actions 'have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders' of the two companies. 'The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old,' the statements said. However, the government source said the agency's investigation found Reliance Infrastructure diverted over 100 billion rupees disguised as inter-corporate deposits (ICD) to other Reliance group entities through an undisclosed, but related entity. ICDs are unsecured loans extended by one company to another. An undisclosed related entity was used to bypass approvals from shareholders and the audit committee, the source said. The Reliance Group did not immediately respond to a separate Reuters' request seeking a comment on these allegations. Reliance Group's businesses range from defense to power and infrastructure, although Ambani himself is not on the boards of any listed entities, following orders passed by the market regulator, which Ambani has challenged. – Reuters
Business Recorder
6 days ago
- Business
- Business Recorder
India's financial crime agency probes Anil Ambani's Reliance Group, source says
India's financial crime-fighting agency searched 35 locations linked to Reliance Anil Ambani Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source said on Thursday. The Enforcement Directorate alleges the group orchestrated a 'well-planned' scheme to siphon off bank loans from YES Bank worth 30 billion rupees ($350 million) between 2017 and 2019 to many shell companies, the source said on condition of anonymity, as he is not authorised to speak to the media. Anil Ambani's Reliance group entities are accused of paying bribes to YES Bank officials before loans were disbursed, the source said, adding that loan approvals violated the bank's processes. Reliance and YES Bank did not immediately respond to requests for comment. Several group firms of Anil Ambani, the younger brother of billionaire Mukesh Ambani, have gone into bankruptcy since 2017. YES Bank, from which Anil Ambani group firms had borrowed heavily, was declared insolvent in 2020 and rescued by a group of Indian lenders in a plan approved by the central bank. Japan's Sumitomo Mitsui Banking Corp is seeking a 20% stake in a deal that has yet to get regulatory approval. The probe also found gross violations in YES Bank's loan approval process, such as lending to companies with weak financials, backdating credit memos, 'evergreening' loans - issuing fresh loans to avoid labelling assets as nonperforming - and misrepresenting financials. YES Bank's former promoter, Rana Kapoor, was charged with bank fraud by the financial crime agency in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in India's financial capital of Mumbai, according to local media reports. India's Reliance quarterly profit surges 78%, tops view Anil Ambani's group entities have been subject to several regulatory actions in recent years. In August 2024, the markets regulator SEBI barred Anil Ambani and 24 others from securities markets for five years, citing fund diversion from Reliance Home Finance. Shares of Reliance Infrastructure and Reliance Power fell as much as 5% on Thursday after the news of the latest probe circulated.
Business Times
6 days ago
- Business
- Business Times
India's financial crime agency probes Anil Ambani's Reliance Group
[NEW DELHI] India's financial crime-fighting agency searched 35 locations linked to Reliance Anil Ambani Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source said on Thursday (Jul 24). The Enforcement Directorate alleges the group orchestrated a 'well-planned' scheme to siphon off bank loans from YES Bank worth 30 billion rupees (S$443.1 million) between 2017 and 2019 to many shell companies, the source said on condition of anonymity, as he is not authorised to speak to the media. Anil Ambani's Reliance group entities are accused of paying bribes to YES Bank officials before loans were disbursed, the source said, adding that loan approvals violated the bank's processes. Reliance and YES Bank did not immediately respond to requests for comment. Several group firms of Anil Ambani, the younger brother of billionaire Mukesh Ambani, have gone into bankruptcy since 2017. YES Bank, from which Anil Ambani group firms had borrowed heavily, was declared insolvent in 2020 and rescued by a group of Indian lenders in a plan approved by the central bank. Japan's Sumitomo Mitsui Banking Corp is seeking a 20 per cent stake in a deal that has yet to get regulatory approval. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The probe also found gross violations in YES Bank's loan approval process, such as lending to companies with weak financials, backdating credit memos, 'evergreening' loans – issuing fresh loans to avoid labelling assets as nonperforming – and misrepresenting financials. YES Bank's former promoter, Rana Kapoor, was charged with bank fraud by the financial crime agency in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in India's financial capital of Mumbai, according to local media reports. Anil Ambani's group entities have been subject to several regulatory actions in recent years. In August 2024, the markets regulator SEBI barred Anil Ambani and 24 others from securities markets for five years, citing fund diversion from Reliance Home Finance. Shares of Reliance Infrastructure and Reliance Power fell as much as 5 per cent on Thursday after the news of the latest probe circulated. REUTERS
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Business Standard
22-07-2025
- Business
- Business Standard
YES Bank shares consolidate post Q1; ICICI Securities upgrades to 'Hold'
YES Bank share price was trading sideways for a second consecutive day on Tuesday, July 22, 2025. The stock of the private bank has slipped barely 0.5 per cent over the past two days, after it reported a healthy set of numbers for the June quarter of the current financial year (Q1FY26) on July 19, 2025. By comparison, the BSE Sensex has added around 0.5 per cent during the period. Domestic brokerage ICICI Securities has upgraded the stock to 'Hold' from 'Reduce' following its quarterly results, citing sustained improvement in its profitability, coupled with the possibility of Sumitomo Mitsui Banking Corporation (SMBC) further raising its stake in the bank. "The possibility of further stake increase by SMBC over the near/medium term cannot be ruled out and, thus, the deal, if approved, seems to be having meaningful embedded option value. We increase our target price to ₹20 (vs ₹16) based on ~1.1x (earlier~0.9x) FY27 adjusted book value. We upgrade the stock to 'Hold' (vs 'Reduce')," it said in its recent report. Why is ICICI Securities positive on YES Bank? 1) Sumitomo may increase shareholding Japanese multinational Sumitomo Mitsui's decision to purchase a 20 per cent stake in YES Bank from State Bank of India (SBI) and other banks is a positive event for the bank and the stock, according to the brokerage. "While SMBC is yet to receive regulatory approval, we believe its induction as the largest shareholder is positive. The possibility of further stake increase by SMBC over the near/medium term cannot be ruled out as well," ICICI Securities said. 2) Business growth soft but NIM stable YES Bank's loan growth moderated further to 5 per cent year-on-year (Y-o-Y), and slipped 2 per cent Q-o-Q, to ₹ 2,41,000 crore. Deposits growth, too, slowed down to 4 per cent Y-o-Y, and down 3.1 per cent Q-o-Q, to ₹ 2,75,800 crore. However, as RIDF declined 16 per cent Y-o-Y and 1 per cent Q-o-Q to ₹36,800 crore, net interest margin (NIM) stayed stable Q-o-Q at 2.5 per cent. "We believe receding RIDF and lagged impact of deposits repricing may enable improving trajectory in NIM Q3FY26 onwards," the brokerage said. On its part, YES Bank is targeting 12–15 per cent credit growth for the year. The guidance for exit FY26 return on asset (RoA) is unchanged at ~1 per cent. YES Bank aspires for RoA of ~1.5 per cent by FY30. 3) Sustained profitability ICICI Securities lauded the bank's strong treasury income of ₹480 crore or 0.5 per cent of assets. YES Bank reported PPoP (operating profit) growth of 53.4 per cent Y-o-Y/3.3 per cent Q-o-Q to ₹1,358 crore and net profit surge of 59.4 per cent Y-o-Y/8.5 per cent Q-o-Q to ₹801.1 crore, showing sustained improving trajectory. 4) Headline gross/net NPA stable Gross slippages inched up to 2.4 per cent annualised vs 2.0 per cent Q-o-Q. However, YES Bank stated that unsecured personal loan and credit card slippages saw improvement over the March quarter of the previous financial year. Gross / net non-performing asset (NPA) ratio was stable Q-o-Q at 1.6 per cent / 0.3 per cent, respectively. "We are closely monitoring retail stress, though believe that nil SR and 0.3 per cent NNPA should keep incremental credit costs comfortable," ICICI Securities said. YES Bank shares: tech outlook YES Bank shares have been in a consolidation phase, with a negative bias, on the technical chart since June 2025. As per the momentum indicators – the Slow Stochastic, and MACD lines – the stock is witnessing a lacklustre trend on the daily charts and is expected to stay rangebound. Further, while YES Bank stock is below the 'Overbought' threshold of '80' on the RSI-14 indicator, it is nearing its near-term resistance of ₹20.54, which is the 50-day moving average. It is also hovering around the 20-DMA of ₹20.12 per share. Add to it, the Supertrend line resistance of ₹20.67 per share on the daily chart is acting as the biggest hurdle for the stock. YES Bank has been trading below the level since June 12, 2025. On the downside, if the stock fails to break above the 20-DMA, it may slide further to ₹19.74 per share and ₹19.39 per share, which are its lower end of the Bollinger Band and 200-DMA, respectively.
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Business Standard
21-07-2025
- Business
- Business Standard
YES Bank share price up 2% as Q1 profit zooms 59% YoY; more details here
YES Bank's share price rose today, buoyed by its strong financial performance in the June quarter of FY2026 (Q1FY26). SI Reporter New Delhi YES Bank share price: Private lender YES Bank share price was in demand on Monday, July 21, 2025, with the scrip rising as much as 2.13 per cent to an intraday high of ₹20.60 per share. At 11:05 AM, YES Bank share price was trading flat at ₹20.17 per share. In comparison, BSE Sensex was trading 0.46 per cent higher at 82,136.48 levels Why did YES Bank share price rise today? YES Bank's share price rose today, buoyed by its strong financial performance in the June quarter of FY2026 (Q1FY26). The lender reported a 59 per cent year-on-year (Y-o-Y) jump in net profit to ₹801 crore in Q1FY26, compared to ₹502 crore in the same quarter last year. On a sequential basis, profit rose 8.5 per cent from ₹738 crore in Q4FY25. The upbeat numbers were driven by a solid rise in both net interest income (NII) and non-interest income. NII, the difference between interest earned and interest expended, grew 5.7 per cent Y-o-Y to ₹2,371 crore, while non-interest income surged 46.1 per cent to ₹1,752 crore. The net interest margin (NIM) held steady at 2.5 per cent for the quarter, unchanged from Q4FY25, indicating stable profitability. Although provisions rose 34 per cent Y-o-Y to ₹284 crore, they declined sequentially, providing some relief to investors. On the asset quality front, the bank maintained stability, with gross non-performing assets (GNPA) ratio flat at 1.60 per cent and net NPA at 0.30 per cent, as of June 30, 2025. In terms of business growth, loans rose 5 per cent Y-o-Y to ₹2.41 trillion and deposits increased 4.1 per cent Y-o-Y to ₹2.75 trillion. The CASA ratio improved to 32.8 per cent, up from 30.8 per cent a year earlier, signalling stronger retail deposit traction. Prashant Kumar, managing director and CEO, YES Bank said, 'The Bank entered the new financial year on a strong footing and delivered a robust performance with net profit rising to ₹801 crore, marking a 59.4 per cent Y-o-Y growth. Key metrics such as RoA (0.8 per cent), PPoP (₹1,358 crore), and NIM (2.5 per cent) showed notable improvement. Asset quality remained stable, CASA witnessed healthy growth, and CET1 strengthened to 14 per cent Other key highlights of the quarter were i) Credit rating upgrades from Moody's, ICRA, and CARE underscore the Bank's solid fundamentals and accelerating growth momentum ii) Sumitomo Mitsui Corporation Bank (SMBC) entered into definitive agreement to acquire about 20 per cent equity stake in YESBANK from SBI & Other Banks.' About YES Bank YES Bank, a private sector bank in India, was established in 2004 and is headquartered in Mumbai. It offers a full range of financial services to individuals, corporates, and MSMEs. The bank's portfolio includes retail banking, corporate banking, investment banking, and digital banking solutions. With a strong focus on technology, YES Bank provides seamless online and mobile banking experiences, supporting a wide customer base across the country. Operating a robust network of branches and ATMs across all states and union territories, the bank has also developed specialised branches such as YES GRACE for women and YES SME for small businesses. Through its subsidiaries—YES Securities and YES Asset Management—the bank offers merchant banking, brokerage, and mutual fund services. Its international footprint includes a presence at GIFT City and a representative office in Abu Dhabi.
