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Yes Bank reported a profit growth of 25%. However, that is not a problem. The main problem is that of breach of trust.Let us understand everything in detail.What is a NPA (Non Performing Asset)?When a bank gives loan, the loan is considered as ‘asset’ in the books of the bank and ‘liability’ in the books of the borrower. Many a times it may happen that the borrower of the money is not able to repay the loan. If the borrower fails to repay the loan and the default continues for 90 days and more, banks treat the asset as a Non Performing Asset (NPA).What is divergence?Divergence in simple words would mean difference. In our country RBI (Reserve Bank of India) is the apex bank. It manages all other commercial banks.As per RBI’s report, as on March 2017, the gross NPAs of Yes Bank came to around Rs.8374 crores and the bank had reported gross NPAs of only Rs.2018 crores. The difference is almost 4 times! This is nothing but divergence. Divergence of Rs.6356 crores.[1][1][1][1]Is there a breach of trust?The divergence is not an issue for other public sector banks, because their reporting of gross NPAs matches more or less with that of RBI’s report. This really raises questions on Yes Bank’s integrity as the divergence is to the tune of 4 times.What really happened after March 2017 is even interesting. Have a look at this:Almost 80% of the divergence is solved as the bank either recovered the amount or it upgraded the accounts to standard accounts where the amount recovery is smooth. In other words, the divergence must not be a huge concern as only 20% of the amount is considered as NPA. And mind you, Yes Bank still has the time till March 2018 to recover these NPAs.So, is the bank still reliable? The answer would be Yes only and only if the bank really won’t make the divergence controversy as its habit. The market punished the stock as it fell almost 8% on BSE and NSE. It may fall even more if strong hands exit the counter. The main reason for the fall is breach of trust.Trust is like the air we breath, when it is present nobody really notices, but when it is absent, everybody notices-Warren BuffetConclusion:Yes Bank is one of the fastest growing banks and it never disappointed its investors. However, the bank has to be more careful in future with controversies of all sorts. Having said that, the confident management and the continuous growth makes this stock a good buy. Stocks like these are always valued richly. Hence, any opportunity at lower levels will make them a good buy.Footnotes[1] https://www.google.co.in/amp/www.livemint.com/Companies/df7T8vWdj3fQHOXQxLVjlM/Yes-Bank-Q2-profit-rises-25-at-Rs100273-crore.html%3ffacet=amp&utm_source=googleamp&utm_medium=referral&utm_campaign=googleamp[1] https://www.google.co.in/amp/www.livemint.com/Companies/df7T8vWdj3fQHOXQxLVjlM/Yes-Bank-Q2-profit-rises-25-at-Rs100273-crore.html%3ffacet=amp&utm_source=googleamp&utm_medium=referral&utm_campaign=googleamp[1] https://www.google.co.in/amp/www.livemint.com/Companies/df7T8vWdj3fQHOXQxLVjlM/Yes-Bank-Q2-profit-rises-25-at-Rs100273-crore.html%3ffacet=amp&utm_source=googleamp&utm_medium=referral&utm_campaign=googleamp[1] https://www.google.co.in/amp/www.livemint.com/Companies/df7T8vWdj3fQHOXQxLVjlM/Yes-Bank-Q2-profit-rises-25-at-Rs100273-crore.html%3ffacet=amp&utm_source=googleamp&utm_medium=referral&utm_campaign=googleamp

I was going through the answers to this question one by one. Some of the answers really surprised me. Seriously, I am stunned. There are so many self-proclaimed experts who have created a mess on Quora.This is the reason why SEBI has made it mandatory for an expert to clear an examination & get certified before teaching people the principles of investing.‘Half cooked knowledge is more dangerous than no knowledge.’Many self-proclaimed experts with half-baked knowledge of financial analysis have written such funny answers with so stupid explanation that seriously requires regulation.It may sound rude but these people will get wiped out of the market and will take others (who listen to them) along with them.Some people are giving support levels to buy YES Bank and DHFL after the plunge!!! Seriously?? I mean this panic selling has broken all the fake support levels in the 30 - 40% fall. Now which support level are you talking about?A guy has written an answer that YES bank is growing at more than 20% CAGR while other banks have not performed at all so this is a scam !!!! What the hell!!!Some guy has shared that YES Bank has a huge contingency debt and Promoter level is decreasing and it is only 18% !!!!!!!!!!! This guy seriously needs some good education in finance.Here are a few facts about banks that I would like to shareA bank takes money from people and institutions in form of deposits for which they pay a token (interest) which is called as the cost of capital. These deposits are liabilities for banks. However, they make money by giving these deposits to people n institutions as loans and earning a higher interest rate than the deposit rates.So, the bank has not loaned out any money of its own. Money comes from depositors in form of deposits and goes out to borrowers in form of loan. Thus, deposits are actually liabilities that keep on accumulating. (Edit: Contingent liabilities are provisions that banks set aside for unforeseen future events. However, they also grow as the loan book grows) Thus, every bank has got a huge liability and a big debt equity ratio but this is what that creates their loan book and their income.Now coming to the promoter holding. RBI has made it mandatory for promoters of banks to not have a holding of more than 15%. Recently a notice was sent to Uday Kotak to reduce his stake in Kotak Mahindra bank to under 15% because that is the rule.Now, coming to some fundamental factors of Yes BankRBI has not yet made it clear as to why they have asked Mr Rana Kapoor to step down as the director. Media houses are just speculating that this might be because of wrong asset classification. Rana Kapoor will definitely fight for his rights against RBI in court.All PSU banks have been performing very badly since last decade. However, HDFC Bank, Yes Bank, RBL, DCB, Kotak Mahindra Bank, ICICI Bank and to some extent Axis Bank have been performing outstandingly well for many many years.(YES Bank has Rs 15k crores on contingencies for FY 2017 - 18 against deposits of Rs 2 lakh crores & advances of nearly the same amount. The loan book growth was a whopping 53% !!!)A person has written in his answer that according to his survey, only 3% people have yes bank account and 21% have hdfc bank account, thus yesbank is not a good bank.This guy must understand the fact that in HDFC Bank has more than 6000 branches, SBI has 24,000 branches, ICICI has 4000 branches but YESBANK only has just below 1000 branches. This is because Yes Bank focusses more on corporates (institutions) rather than retail segment. Yes Bank is a Rs 50 thousand crore bank whereas HDFC is a Rs 5 lakh crore bank.So this difference is bound to happen.Now coming to DHFL, then you can follow my other answer here on this link which I wrote today.Karan Samal (करन सामल)'s answer to Is it a right time to buy DHFL share as it cracked almost 40+%. What are the reasons for its fall and the reasons to buy or not?So, would I go and buy Yes Bank and DHFL on Monday? Definitely YES. Would YOU buy? Depends on you and your understanding of these businesses.And please do not try to analyze such situations through technical charts.

Yes of course the Congress is responsible.Why? Well. Many reasons but the main two beingJawaharlal Nehru is responsible for EVERYTHING that is wrong in India today, and shall remain responsible till the end of time.Yes Bank was established in 2004 (incorporated in 2003). This was when A B Vajpayee was the Prime Minister. Vajpayee was able to be PM because Rajiv Gandhi made it possible for him to get treatment in the United States, possibly saving Vajpayee's life. [1]Ok. More seriously. How incompetent, blind, and stupid does the Finance Minister have to be to blame a previous government for a crisis under the present governments watch? After this government has been in absolute control for six years now. More importantly, how stupid does she think citizens of India are? But then to be fair to her, she cannot take responsibility; her boss will be angry. If she blames Congress, at least she will not get fired and the Bhakts will worship her a bit.For those who don't want to or cannot read long reports here are some facts.#YesBank Loan Book situationMar'17 : ₹1,32,262 crMar '19 : ₹2,41,499 crWho was given the 1,00,000 crores?The 'growth' over 7 years is even more fascinating, the loan book was 55,000 crores in FY 13.For those who want to claim this as a great growth, hang on. Here is how the Non Performing Assets grew in the last six years.2015- Rs 313.40 Cr2016- Rs 748.98 Cr2017- Rs 2018.56 Cr2018- Rs 2626.80 Cr2019- Rs 7882.56 CrThe bank has been under the RBI scanner apparently from 2017. [2][2][2][2] So what was happening in terms of governance?Who knew that the RBI was going to cap withdrawals?Vadodara Smart City Development Company, Special Purpose Vehicle of Vadodara Municipal Corporation, withdrew Rs 265 crore from #YesBank a day before RBI imposed moratorium: Official— Press Trust of India (@PTI_News) March 6, 2020Was it Adani Gas too? Why am I not surprised?Remind me, who has been running the country in the last six years? For whom have they been running it?India is in a sad situation where buffoons, charlatans, liars, and incompetent idiots are in charge. They are clueless yet full of hubris and the only thing they know is to blame someone else.PS: I may be unfair to Nirmala Sitharaman. She probably does not have an account in Yes Bank. [3][3][3][3] How would she then know what problems it faced?Footnotes[1] http://"Rajiv Gandhi Is Why I Am Alive": A Remarkable Story In Atal Bihari Vajpayee's Words - NDTV https://www.ndtv.com/india-news/rajiv-gandhi-is-why-i-am-alive-a-remarkable-story-in-atal-bihari-vajpayees-words-1901668?[2] Why did Yes Bank collapse? From bad loans to RBI’s negligence are the reasons [2] Why did Yes Bank collapse? From bad loans to RBI’s negligence are the reasons [2] Why did Yes Bank collapse? From bad loans to RBI’s negligence are the reasons [2] Why did Yes Bank collapse? From bad loans to RBI’s negligence are the reasons [3] 'I don't eat onion': FM Nirmala Sitharaman on skyrocketing onion prices[3] 'I don't eat onion': FM Nirmala Sitharaman on skyrocketing onion prices[3] 'I don't eat onion': FM Nirmala Sitharaman on skyrocketing onion prices[3] 'I don't eat onion': FM Nirmala Sitharaman on skyrocketing onion prices