A withdrawal restriction of Rs 50,000 from Yes Bank. More withdrawal only in exceptional cases such as expenses for medical treatment, marriage and education. The RBI has superseded the Board of Directors at Yes Bank Ltd. The restriction will remain in place till 3rd April 2020. Prashant Kumar, ex-DMD and CFO of the State Bank of India has been appointed as the administrator. This has been done to quickly restore the depositors’ confidence in the bank.
Yes Bank Ltd. has been placed under Moratorium, and Section 45 of Banking Regulation Act (1949) has been applied.
Yes Bank’s share value has eroded more than 90%in the past one year due to concerns over its asset quality and uncertainty about capital raising plans. The cash strapped lender is scouting for capital to stay compliant with Reserve Bank of India’s capital norms.
The financial position of the bank has undergone a steady decline, largely due to its inability to raise capital, address potential loan losses and resultant downgrades. Consequently, it has triggered invocation of bond covenants by investors and withdrawal of deposits.