Not learning from expereinces is sheer extravagance
Yes Bank is a peculiar case study expanding across spheres of corporate governance; financial sector regulation; securities market regulation; investor behavior; crisis management; audit failure; risk management; decision making; and much more. The consequences are (i) investors' wealth has eroded materially and (ii) the interest of the entire financial system, including depositors, has been imperiled. By dithering on taking a prompt and appropriate action, the regulators are perhaps indicating that no lessons have been learned from the debacle of IL&FS and PMC. The worst, the bank continues to be a part of the benchmark Nifty50 and NiftyBank, forcing the passive investors to buy this poor quality stock. Besides, the equity shares of the bank continue to trade in the derivative segment encouraging speculative trades, especially by small investors in search of windfalls. Apparently, the bank has been violating the prudential lending norms with impunity. Bo...