Ravneet Gill surprised markets by declaring a massive loss in Q4 numbers of Yes Bank. However, this could be a blessing in disguise for the bank.
In a single stroke he has almost completely eliminated the overhang from IL&FS and Jet to some extent. And with the announced capital raising of over ₹ 25,000 crores in debt plus equity, he has also cleared the decks for Yes Bank to break free of the shackles of the past. And because the debt component is so significant, he has kept a check on equity dilution also.
In many ways, this is the perfect balancing act for Yes, and even better for Gill. He can’t be held responsible for this loss, and now he has a clean bank with healthy assets and enough capital to play with. And if there’s a recovery in these NPAs as one can expect in future, it will only boost his record!
In a single stroke he has almost completely eliminated the overhang from IL&FS and Jet to some extent. And with the announced capital raising of over ₹ 25,000 crores in debt plus equity, he has also cleared the decks for Yes Bank to break free of the shackles of the past. And because the debt component is so significant, he has kept a check on equity dilution also.
In many ways, this is the perfect balancing act for Yes, and even better for Gill. He can’t be held responsible for this loss, and now he has a clean bank with healthy assets and enough capital to play with. And if there’s a recovery in these NPAs as one can expect in future, it will only boost his record!
