Abstract

An Analysis With Mathematical Approach - Major Reasons Behind the Crisis of Yes Bank from the Indian Stock Market

Ananya Paliwal, Antra Sharma, Nandini Kapoor, Shambhavi Thakur

Volume: 13 Issue: 4 2023

Abstract:

Yes Bank is a big private bank that faced a huge crisis in March 2020. Several things led to such a downfall. There was improper governance and no proper maintenance of the balance sheet which led RBI to impose a 30-day moratorium to save the bank. After the moratorium was placed on the yes bank the shares of the bank crashed by nearly 85% hitting a record low of Rs.5.55. The RBI had posted a limit of cash withdrawal of Rs. 50000. This heavily affected the stock market as this heavy sell-off added more pressure to the stock market. The BSE Sensex ended at 37,576.62, down 893.99 points, which was 2.32%, and the Nifty ended at 10,989.45, down 279.55 points, which was 2.48% and BSE Bankex ended at 3.46% down. Since banks affect a huge part of the economy, RBI took the initiative to save it from any huge collapse and save other financial institutes from its impact as well. Based on our findings, suggestions and precautionary measures can be drawn on multiple levels for the prevention of similar incidents.

DOI: http://doi.org/10.37648/ijrssh.v13i04.021

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