Did Yes Bank Management lied?

Interview Dated July 18, 2019

Gill, in his interview to CNBC-TV18, said the capital raised would be "for growth purposes only, and not to heal the balance sheet" of Yes Bank.

Gill said the bank was looking to conclude the capital raising exercise in the second quarter of FY20. When asked if capital would be required for the bank's clean up exercise, he said the operating profit of the bank would suffice.

Video link: Gill Interview

Interview Dated December 01, 2019

Select portions from the interview is reproduced below:

What has changed between then and now in terms of the $1.2 billion becoming $2 billion is if you see the way the financial services right now are in the country, the opportunity that exists private sector banks today, has become much broader. I think the path forward has become much clearer and much longer. We thought that if such an opportunity does exist, won’t it be better to capitalise ourselves even more than what we had initially set out to do and then monetise this big growth opportunity that lies ahead of us?

I also think in terms of providing more comfort to our various stakeholders that the bank is on a stronger and more stable footing, that messaging would be important. So I would say that if there is one takeaway that the market should have from this board announcement is the fact that there is $2 billion of capital available to the bank.

Videl Link: Gill Interview

Letter dated: February 12, 2020 (from BSE regulatory filing by Yes Bank):

The Bank and its management is deeply engaged with the exercise outlined above and which includes extensive work with its investment bankers, legal and accounting advisors, the investors and the independent vendor/legal due diligence commissioned for investors. Given that the current capital raising process has the Banl<' s fullest attention, it would like to inform the exchanges that it will publish its unaudited financial results for the quarter and nine month period ending December 31, 2019 on or before March 14, 2020. 

On 14 March 2020 Yes Bank declared Quarter 3 results. Business Today report states:

YES Bank's deposit base crashed from Rs 2.09 lakh crore in September 2019 to Rs 1.65 lakh crore in December 2019.  It has now gone further down to Rs 1.37 lakh crore as on March 04, 2020. That shows a complete break of trust in the bank.

YES Bank's gross NPAs have pole-vaulted to 18.87 per cent -- the highest in the private banking space. Many public sector banks, though, reported such high levels of gross NPAs a few years ago. The absolute NPAs figure is at staggering Rs 40,709 crore. This is alarming as there would be another set of stressed loans that will increase the bad book to unsustainable levels.

The final question

Did Yes Bank lied repeatedly and can investors / depositors sue Yes Bank for believing in their repeated false statement about Strong Balance Sheet and Operating Profits?

Learning from Yes Bank Fiasco

As Jason Karaian, correctly titled his article in Quartz:

That’s it, we can never trust bankers again.