Yes Bank Limited

First, we'll talk about where India's crackdown on food safety is headed.

And then we'll talk about Yes Bank's 2020 problem being back.

Welcome back to The Daily Brief by Zerodha, where we cut through the noise to help you understand what's actually happening in the most important stories from business and markets.

I'm your host Akshara.

On 6th October, FSSAI told states to step up inspections and sampling ahead of the festive season, so it's likely that we'll be seeing more headlines in the coming weeks.

Coming to the second story.

For the last couple of years, Yes Bank has been one of Indian banking's better comeback stories.

And we covered it ourselves.

Capital buffers remained strong with an overall adequacy ratio standing at 16.68%.

Elsewhere in the sector, Yes Bank announced a 65% jump in net profit to Rs 1,080 crore.

However, a shadow looms over these headline figures regarding additional Tier 1 bonds.

A recent Supreme Court judgment means the bank could face a loss of over Rs 5,200 crore if the reinstatement impact is recognized immediately.

Your quick dive into the top stories shaping the business world today.

Let's begin with Yes Bank.

While the Supreme Court has ruled that the Rs 8,400 crore write-off of 81 bonds in 2020 was illegal and arbitrary, the decision offers relief to bondholders but experts warn it could create regulatory uncertainty.

Despite the ruling, Yes Bank shares fell around 13% on Thursday.

Next up, as India is cutting, some European flights were expanding services to Australia and Japan, as rising fuel costs and Pakistan airspace restrictions put pressure on its operations.

Flights from Delhi to Copenhagen and Vienna will be suspended, while services in Birmingham, London Gatwick and San Francisco will be reduced.

The agreement will be operationalized once India secures a competitive advantage over peer countries.

In a major development for the banking sector, the Supreme Court rejected Yes Bank's eight thousand four hundred crore RE one bond write-off, upholding the Bombay High Court's decision.

The bank is now liable to honor these bonds at the prescribed coupon rates along with interest, creating a significant financial liability.

Meanwhile, India's overall exports rose to eighty point seven five billion dollars in September, compared with seventy-two point seven billion dollars a year ago.

Gandhi explained that because an SPV is a new entity, a loan is given based on what he assumes is the promoter's credit history.

Even some formal lenders, including Yes Bank, participate in this space.

But short tenure informal borrowing is still quite common.

Nayagam described producers scrambling to raise 20 lakh rupees for two or three days at 5% interest just to cover last-minute delivery costs, like remastering a film to a streaming platform's specifications, for example.

Uh, but ulta hua 2018 mein.

We had the ILFAs and India Bulls and Yes Bank getting into trouble in quick succession.

Mm-hmm.

2018 mein, we got hit in India.

Suryoday is not alone.

In mid-August, Yes Bank announced a CLOU tie-up with Kiwi, another fintech app.

That was just a week after Pine Labs launched its own CLOU with J&K Bank and said in its Q1 earnings call this year that it was betting on the same product.

Even Navi, which is now India's fourth-largest UPI app, is betting on it too.

In that gap of about 400 million people sit many who the executive claims would love a credit card, and even more so if people could save on the time and effort of getting one.

Which is exactly what CLOU makes easier.

When Kiwi launched its CLOU with Yes Bank, it reported that 95% of eligible applicants were approved within two hours, and nearly half had never had a card.

card.At Suryoday, 97% of its customers were new to the bank, while 43% already had a card from some other bank.