- ED probes ₹3,000 crore Yes Bank loan fraud tied to Anil Ambani firms. Red flags: rushed approvals, missing checks & possible insider deals.
Yes Bank (NSE: YESBANK) is back in the headlines after India’s Enforcement Directorate (ED) launched sweeping raids across 35 locations tied to the Reliance Group and its affiliates. At the heart of the investigation is a staggering ₹3,000 crore loan fraud case, one that has reignited concerns over the bank’s lending practices and long-term governance credibility.
The raids, which began early Thursday, targeted over 50 companies and 25 individuals linked to Anil Ambani’s RAAGA group. The ED, acting under the Prevention of Money Laundering Act (PMLA), was following up on earlier FIRs filed by the Central Bureau of Investigation.
Regulatory agencies, like SEBI and the National Financial Reporting Authority (NFRA), have reportedly shared key documents with the ED to accelerate the probe.
Red Flags in Yes Bank’s Loan Approvals
The ED is digging into signs that Yes Bank may have approved shady loans using questionable methods. Some loans were allegedly rushed through using old approval documents, sent to companies already in weak financial shape. In a few cases, investigators believe insiders may have received bribes to fast-track these deals.
What’s raising even more eyebrows is that some loans were paid out before getting official approval, a clear red flag. Investigators have also found missing paperwork, overlapping company directors, and large sums handed out on the same day applications were filed.
Together, these issues suggest deeper problems with how the bank handled risk and approvals in the past, problems that now sit at the center of a growing investigation.
Yes Bank Share Price Analysis
- Current price: ₹20.01
- Day high: ₹20.08
- Support level: ₹19.50
- Resistance zone: ₹20.85 and ₹21.90
Outlook: Yes Bank Stock on a Knife’s Edge
For now, Yes Bank shares are holding steady, but that calm may not last. The next phase of the ED’s investigation could shift sentiment sharply, especially if current executives are pulled into the dragnet or if auditors uncover deeper cracks in the bank’s financials.
Both retail and institutional investors would be wise to tread carefully. With the stock hovering near key support levels, even a whiff of fresh controversy could trigger sharp swings. This isn’t just a fraud case anymore, it’s a credibility test for Yes Bank’s future.
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