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Contributed By Ms. Kamakshi Bhatt, Assistant Professor Faculty of Commerce and Business Management

Yes Bank was incepted in 2004 with the vision of “Building the Finest Quality Large Bank of the World in India.”

Till 6th of March, 2020, when RBI called for a moratorium on Yes Bank, it could have been said that bank is moving towards achieving its vision. But somewhere, something is there, not visible in facts & figures that lead to this fiasco.

It was a well grown Commercial bank regulated by RBI norms with loads of mandates & paper work, annual audit, semiannual internal audit, proper documentation and a software where each & every transaction is recorded and balanced at each day’s end. Then how come such a big bank can manipulate its accounts and cannot withstand its commitment of March 2019 financial statement to March 2020 financial year.

The Nation needs to know how a Bank which had a bad loans rate of just 3.2 percent as of March 31, 2019, ended up in this situation a year later.Source: Vivek Kaul @ newslaundry.com

Ethics, a much known term in Management means “the study of what is right & wrong in human behavior.” Managerial ethics is a set of principles or rules communicated by top management that define what is right & wrong in an organization.

Mr. Rana Kapoor, the founder and former Managing Director & CEO of Yes Bank can be said to be the first man of Yes Bank. He is supposed to be the main frame of drafting and communicating all the ethical policies or any policy or rule that the management has to follow.

It’s somewhere an  ethical failure that Mr. Kapoor is under arrest for Money Laundering. Shady data was provided, fake loans were given. The general public was shaken, they were not able to withdrew their own hard earned money.

Banks are considered to be the safest medium & if these banks will only be found involved in money laundering then no doubt there will be a diminution of public trust in banking system.

A few hands were able to tremble the entire Financial System even when our Financial System is so transparent & flexible.

Entire scenario draws the attention and anticipates a responsible answer to following queries:-

  • Are our ethical values so weak that before doing such act these people don’t even give a damn thought that one might be caught at the end of day? We talk about
  • Corporate Governance. What role is it playing? Every year a compliance failure tops the list and a case study is formed. Data breach has become so common that it feels like the regulatory bodies are just for sake.

When our country is facing such a provocation, the politicians are busy in blaming each other.

As per Chidambaram:  Yes Bank fiasco caused by ‘mismanagement’ of financial institutions under BJP Govt.
Source: MoneyControl.com

Amit Malviya said: Former Finance Minister P Chidambaram is the one who should be blamed for the “mess” Indian banks and the economy are in today.
Source: India today. com

Don’t you think it’s a moral loss?

 It’s such a situation where whole country should stand together and try to figure out the shortcomings.

This financial failure is undoubtedly a big loss to our Financial System but if we see it other way round, it’s more of an ethical loss. Our basic moral values are at stake and we need to work on this aspect. Building a great nation actually needsmorally and socially  strong people with good ethical values.

If people will be morally sound, true to their characters which they play, they will reflect even brighter colors and we will hear less of such fraudsand a more strong Financial Systemwill form the base of our would be Economy.


  • Leading News Papers
  • India today. in
  • Money control. com

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