YES Bank troubles run deeper than investors believe; cleanup will be tough

It is unlikely to find a long list of suitors and any arranged marriage will need to be solemnized by the RBI

It's no secret that India's banking regulator hates having its officials sit on the boards of state-run lenders.

The practice exposes the Reserve Bank of India to all kinds of potential conflicts it would rather avoid. So when the RBI used its special powers to appoint a former deputy governor as a director of Yes Bank Ltd., a non-state lender, it sent a powerful signal: The bank's troubles run deeper than investors believe, and a cleanup will probably be harder. The eventual solution may be to let the country’s 10th-largest bank by market value get swallowed by a bigger balance