From Boom to Bust: YES Bank’s ₹1 Lakh Crash to ₹5,000 in 7 Years

Image Source: Equity Master

Once hailed as a multibagger marvel, YES Bank has become a cautionary tale in India’s stock market. Investors who bought at its 2018 peak have seen their ₹1 lakh investment shrink to just ₹5,000, as the stock plummeted from ₹404 to ₹19.75 over seven years.

Key Highlights:

•⁠ ⁠Meteoric Rise: Between 2009 and 2018, YES Bank surged 4,660%, turning ₹1 lakh into nearly ₹47.6 lakh.

•⁠ ⁠Dramatic Fall: Since August 2018, the stock has lost 95% of its value, now trading around ₹19.75.

•⁠ ⁠Crisis Trigger: The downfall began with underreported NPAs, governance lapses, and a fraud scandal involving founder Rana Kapoor.

•⁠ ⁠Regulatory Rescue: In 2020, the RBI imposed a moratorium and led a restructuring with support from major Indian banks.

Outlook:

While YES Bank has stabilized under new management and resumed profitability, investor confidence remains fragile. Analysts advise caution, citing legacy baggage and slow recovery. For many, YES Bank is a stark reminder that not all multibaggers stay golden.

Source: Trade Brains