New Delhi: As the Reserve Bank of India released a draft plan to restructure Yes Bank on Friday, finance minister Nirmala Sitharaman said that the crisis of Yes Bank was not sudden. The day-to-day activities of the bank were being monitored by the RBI since 2017. There have been several attempts to revive the bank but in vain, the minister has said. Also Read - Yes Bank Crisis: Puri's Lord Jagannath Has A Reason to Worry
The bank was founded by Rana Kapoor and Ashok Kapur in 2004. In 2008, Ashok Kapur was killed in the 26/11 terrorist attack when he was at Kandahar restaurant along with his wife Madhu Kapur. Madhu was able to escape but Ashok couldn’t. Also Read - Yes Bank Crisis: Hilarious Memes on Restricted Withdrawals to Rs 50,000 Will Surely Make You Laugh
Interestingly, Rana Kapoor and Ashok Kapur were friends who became brothers-in-law after Madhu’s sister got married to Rana. Also Read - Why Blame UPA if Yes Bank Crisis Started in 2017? Chidambaram's Point-by-Point Reply to FM
The death of Ashok Kapur started a Kapoor versus Kapur battle which went to the court. According to reports, Rana Kapoor sidelined Madhu Kapur after Ashok Kapur’s death and started taking decisions alone.
As the issue surfaced, RBI, in 2018, rejected Yes Bank’s request to give a three-year extension to Rana Kapoor as the CEO. He was supposed to step down in 2019. Deutsche Bank India head Ravneet Gill became the new CEO. It was at that time that the Kapoor versus Kapur battle reached an out-of-court settlement.
In April 2019, Yes Bank reported its first quarterly loss. RBI appointed ex-central bank deputy governor R Gandhi as additional director to Yes Bank board for closer scrutiny. Several deals were being expected to revive the bank. In February 2020, the bank said it received non-binding expressions of interest from JC Flowers, Tilden Park Capital Management, OHA (UK) and Silver Point Capital. In less than a month, RBI placed it under moratorium taking over the board.