RBI on Thursday imposed a month-long moratorium on YES Bank citing "serious deterioration in its financial position"
The bank has also experienced serious governance issues and practices in the recent years which have led to steady decline of the bank
The customers claimed that the bank had not given any prior information about it while many rued that the ATMs have run out of cash.
Lender placed under moratorium; withdrawal capped at Rs 50,000; govt, central bank flag governance issues
It will depend on the acquiring bank or financial institution's capacity to hold the assets till the market improves and sell them later to recover sizeable chunk of the loans
Yesterday, the SBI said its board had given in-principle approval to consider an "investment opportunity" in YES Bank although no decision had yet been taken to pick up stake in the bank
From the State Bank of India exploring opportunity to pick up stake in YES Bank to RBI Deputy Governor deciding to step down, Business Standard brings you the top headlines of the day
The announcement came hours after Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board
This has been done to quickly restore depositors' confidence in the bank. The scheme for reconstruction and amalgamation of bank is also being put in place, RBI said in the statement.
In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue of anxious depositors
Yes Bank has been placed under moratorium and the government is reportedly planning a rescue plan involving a capital injection by a consortium led by State Bank of India.
The central bank has appointed former SBI CFO Prashant Kumar as the Yes bank's administrator
The RBI removed Yes Bank's board and appointed Prashant Kumar, a former chief financial officer of the State Bank of India (SBI), as administrator.
Earlier in the day, sources said SBI along with some other financial institutions would bail out capital-starved Yes Bank, with the government giving the go-ahead.
Over the past few months, YES Bank has struggled to raise capital - nearly $2 billion - it desperately needs to stay above regulatory requirements
Most analysts believe it is a positive step for the Indian financial sector as the the government has tried to avoid a repeat of IL&FS-like crisis
SBI has also been authorised to pick other members of the consortium
If the private bank is able to raise funds in this round, it would get some breathing space
In the last six trading days, the stock has slipped 21 per cent, as compared to 3.4 per cent decline in the S&P BSE Sensex
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