January 29th, 2021

Vital Signs S01E03: Are diamonds really forever? Can Yes bank emerge from its crisis?


Rana Kapoor the founder of Yes Bank once said “Diamonds are Forever” and swore he would never sell his shares in the company. Fourteen months later his stake had fallen to less than 1% and he went to jail. Meanwhile, Yes Bank reported a profit of ?150.71 crores for the third quarter ended December 2020 after having posted a record loss of ?18,654 crores just a year ago. Is there still any luster left in Yes bank?

In this episode, Sundar and Sathya discuss the rise and fall of Yes bank against the backdrop of a rapidly growing private banking sector in India. Based on an upcoming book ‘Yes Man: The Untold Story of Rana Kapoor, written by Pavan C. Lall, and his own insights, Sundar traces the dramatic growth of Yes bank and the events that later sent it down a slippery slope.

As a value investor, Sathya then dissects Yes bank’s books and shows how the bank compares with its peers both in the public as well as the private sector. In the absence of intrinsic value, they then examine if there is an opportunity for a short-term investor based on technical indicators. Tune in to find out what they conclude.