3 Point Analysis | Why investors should shun Yes Bank’s FPO

Private sector lender Yes Bank will launch its Rs 15,000-crore follow-on public offering (FPO) on July 15. The FPO is more of a firefighting measure that will help it meet regulatory norms, but is far from enough to mitigate the lender’s deep-rooted problems.

The weakest spot of Yes Bank right now is its liability profile. In its last reported quarter earnings, deposits declined sequentially by a substantial 36 percent, in excess of Rs 60,000 crore. While Yes Bank had been able to turn the tide in April and bagged government businesses as well, it will still take long to build a robust liability franchise

Moneycontrol's Sakshi Batra does a 3 Point Analysis on why investors should shun Yes Bank’s FPO?