Yes Bank board was reconstituted with immediate effect on Thursday, 26 March, with the appointment of eight members pursuant to Yes Bank Limited Reconstruction Scheme, 2020.
Jet Airways founder Naresh Goyal on Saturday, 21 March, appeared before the Enforcement Directorate in connection with a money laundering probe against Yes Bank promoter Rana Kapoor and his family members.
Earlier on Thursday, Reliance Group chairperson Anil Ambani appeared before the ED in for questioning. On Wednesday, the crisis-hit bank said, “Our banking services are now operational. Customers can now experience the full suite of our services.”
- RBI Governor Shaktikanta Das on Monday said the Yes Bank crisis resolution was quick and timely
- The CBI booked Rana Kapoor, his wife Bindu and Avantha Realty promoter Gautam Thapar in a fresh case on 13 March
Yes Bank Board Reconstituted With Immediate Effect
Yes Bank board reconstituted with immediate effect with the appointment of 8 members pursuant to Yes Bank Limited Reconstruction Scheme, 2020.
"Remitted Rs 397 Crores to SBI Account of Jagannath Temple Corpus Fund": State Head of Yes Bank
Senior President & State Head of Yes Bank Jaydev Das, stated that the bank have remitted Rs 397 crores to the designated State Bank of India (SBI) account of Jagannath Temple Corpus Fund.
Yes Bank Halts 4-Session Rally; Shares Tumble Over 29 Percent
Shares of Yes Bank on Thursday, 19 March, halted its four-session rally and plunged over 29 percent after the company said its single largest promoter Madhu Kapur has pledged an additional 25 lakh share of her family's shareholding in the bank, reported news agency PTI.
The scrip plummeted 25.74 percent to Rs 45.15 at the BSE.
Anil Ambani Appears Before ED in Money Laundering Case
Reliance Group chairperson Anil Ambani appeared before the Enforcement Directorate in Mumbai on Thursday for questioning in connection with a money laundering case involving Yes Bank and its founder Rana Kapoor.
Yes Bank: Wadhawans Cite COVID-19 Threat, Reject ED Summons
After skipping ED summons thrice, promoters of crisis-hit DHFL, Kapil and Dheeraj Wadhawan, have cited COVID-19 pandemic for their non-appearance in connection with the money laundering probe against Yes Bank founder Rana Kapoor and others, officials said today.
The Wadhawan brothers, who denied any wrongdoing in their dealings with the bank, were supposed to appear before the central agency on Tuesday at its office in south Mumbai, reported PTI.
Yes Bank: Banking Services Resume as RBI Lifts Moratorium
Yes Bank has resumed its bankign services after RBI lifted the moratorium. “Thank you for for your patience and co-operation,” Yes Bank tweeted.
ED Books Rana Kapoor in Fresh Money Laundering Case Under PMLA
The ED has filed a fresh money laundering case against Yes Bank promoter Rana Kapoor and his wife for allegedly obtaining Rs 307 crore bribe from a realty firm routed through the purchase of a bungalow in Lutyens' Delhi at half the market price, officials said on Tuesday.
The agency alleged that the bribe was paid to the Kapoors for facilitating around Rs 1,900 crore loans from Yes Bank to the realty firm and delaying recovery.
An Enforcement Case Information Report (ECIR), which is equivalent of a police FIR, has been filed under the Prevention of Money Laundering Act (PMLA) on the basis of an FIR filed by the CBI on the matter recently, they said.
This will be the second complaint against him under the Prevention of Money Laundering Act (PMLA).
Absolutely No Worries on Liquidity Front, Says Yes Bank CEO-Designate
Yes Bank CEO-designate Prashant Kumar said there are absolutely no worries on the liquidity front and that complete operational normalcy would be restored from 6 pm on Wednesday.
"We have made adequate precautions. All our ATMs are full with cash. All our branches have adequate supply of cash. So, from Yes Bank side, there is absolutely no issue on the liquidity front," Kumar told reporters here on Tuesday.
SBI Chairman Rajnish Kumar said not even a single Yes Bank share it holds would be sold before the three-year lock-in period.
He also said that SBI would increase stake in Yes Bank to 49 per cent from current 42 per cent in second funding round.
Yes Bank Officials Address Media
Moody's Upgrades Yes Bank Rating by a Notch; Outlook Positive
Acting quickly on the fast-evolving capital position under the RBI-mandated restructuring of Yes Bank, rating agency Moody's on Monday upgraded its ratings with a positive outlook, PTI reported.
Earlier in the day, Yes Bank announced that seven banks led by SBI have invested Rs 10,000 crore, boosting its core capital. Later, Reserve Bank Governor Shaktikanta Das said that if need be, the central bank would give additional capital support to the crippled lender.
Zee Group Says All Loan from Yes Bank Fully Secured
The Essel Group on Monday said all the credit facilities availed by the group from the crippled Yes Bank are fully secured and that only the infra arm has taken the debt from the bank, PTI reported.
The group in a statement also confirmed the Enforcement Directorate summon for group founder Subhash Chandra on 18 March.
Subhash Chandra ‘Summoned’ in Money Laundering Case Involving Rana Kapoor
The Enforcement Directorate on Monday, 16 March, issued summons to Subhash Chandra of Essel Group, former Jet Airways chairperson Naresh Goyal and the promoter of DHFL, Kapil Wadhawan, in connection with a case involving Yes Bank and its founder Rana Kapoor.
Fresh summons were also issued to Reliance Group chairperson Anil Ambani to appear on Thursday in connection with a money laundering case.
Yes Bank Founder Rana Kapoor's Custody Extended to 20 March
Special Enforcement Directorate (ED) court in Mumbai extends custody of Yes Bank founder Rana Kapoor up to 20 March.
RBI Governor Addresses Media on Yes Bank Crisis
RBI Governor Shaktikanta Das Addressed the media on the Yes Bank crisis and said that the action for its relief was quick and timely.
“Swift action has been taken by the RBI and Government of India. The lifting of moratorium will be on Wednesday, 18 March at 6 pm,” he said.
“I would like to convey to the depositors of Yes Bank, through you, that their money is completely safe and there is nothing to worry. There is no reason for any undue worry,” he added.
Yes Bank to Resume Full Banking Services From 6 pm, 18 March
Yes Bank took to Twitter on Monday, saying that they would be resuming full banking services from Wednesday, 18 March, at 18:00 hours. The bank also said that people would be able to access all the bank’s digital services and platforms from that day.
We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms@RBI @FinMinIndia— YES BANK (@YESBANK) March 16, 2020
Yes Bank Shares Bounce Back, Zoom Over 58%
Shares of Yes Bank on Monday jumped sharply by over 58 percent after the union cabinet on Friday approved reconstruction scheme for the stressed lender.
The scrip witnessed a strong comeback and zoomed 58.12 percent to Rs 40.40 on the BSE.
On the NSE, it climbed 58.12 percent to Rs 40.40.
Anil Ambani Files Adjournment Application, Seeks Time to Appear Before ED
Anil Ambani has filed an adjournment application and has sought more time to appear before the ED after the agency summoned him in connection with its probe.
ED Summons Anil Ambani
Reliance Group Chairman Anil Ambani has been summoned by the ED in connection with its money laundering probe against Rana Kapoor and others, officials said on Monday, according to PTI.
They said Ambani has been asked to depose at the Enforcement Directorate office in Mumbai on Monday as his group companies are one among the big entities whose loans went bad after borrowing from the crisis-hit bank.
It is understood that Ambani has sought exemption on health grounds from the agency and he may be issued a new date, PTI reported.
Ambani's group companies are stated to have taken loans of about Rs 12,800 crore from the bank that turned NPA.
IDFC First to Invest Rs 250 Crore in Yes Bank
IDFC First Bank on Sunday, 15 March said it will make an equity investment of Rs 250 crore in beleaguered Yes Bank to acquire 25 crore equity shares. "duly authorized committee of the Board of Directors of IDFC First Bank Ltd had at its meeting held on 14 March, 2020 accorded approval for an equity investment of upto Rs 250 crores comprising upto 25 crore equity shares at a price of Rs 10 each and face value of Rs 2 each, under the proposed Scheme of Reconstruction of Yes Bank Ltd under the Banking Regulation Act, 1949, subject to regulatory and government approval(s), if any," the bank said in a BSE filing.
Earlier on Saturday, Federal Bank had committed to investing Rs 300 crore in Yes Bank for subscription of its 30 crore shares.
HDFC to Infuse Rs 1,000 Crore Into Yes Bank
HDFC will also infuse Rs 1,000 crore into Yes Bank, while Axis Bank will invest up to Rs 600 crore to purchase 60 crore shares in the bank, PTI reported on Friday.
CBI Registers Another Case Against Rana Kapoor, Holds Raids
The CBI has booked Yes Bank founder Rana Kapoor, his wife Bindu and Avantha Realty promoter Gautam Thapar in a fresh case, officials said on Friday, according to PTI.
The case relates to the Amrita Shergill bungalow deal and alleged bribe for relaxation in realisation of loans worth over Rs 2,000 crore to Thapar's companies, according to officials.
The probe agency is carrying out searches in Delhi and Mumbai at multiple locations, including the office and residences of Kapoor, his wife Bindu, office of Bliss Abode linked to Bindu, Thapar and his companies, and the India Bulls Housing Finance Ltd, the officials added, according to PTI.
SBI to Invest up to 49% of Equity: FM Sitharaman
Talking about the reconstruction plan for Yes Bank, Sitharaman on Friday said that SBI would invest up to 49 percent of equity and that other investors are also being invited.
“There will be three years lock-in period for SBI for up to 26 percent of their investment. For others, there will be a lock-in period of 3 years of 75 percent of their investment,” Sitharaman added.
ICICI Bank to Invest Rs 1,000 Crore in Yes Bank
ICICI Bank on Friday said its board has approved investing Rs 1,000 crore in Yes Bank.
"This investment is likely to result in ICICI Bank Ltd holding in excess of 5 percent shareholding in Yes Bank," the lender said in a regulatory filing.
Moratorium to Be Lifted Within 3 Working Days After Notification of Reconstruction Scheme
FM Nirmala Sitharaman said on Friday, 13 March, that the Yes Bank moratorium will end at 1800 hours on the third working day after notification of the impending reconstruction scheme for the embattled bank.
Sitharaman added that a new board, having at least two directors of SBI, will take over within seven days of the issuance of notification.
ICAI to Review Yes Bank's Financial Statements
Chartered accountants' apex body ICAI will review financial statements of crisis-hit Yes Bank. The Financial Reporting Review Board (FRRB) of the Institute of Chartered Accountants of India (ICAI) would take up the review of general purpose financial statements of Yes Bank for 2017-18 and 2018-19.
Rana Kapoor's ED Custody Extended Till 16 March
A PMLA court in Mumbai on Wednesday, 11 March, extended till 16 March the ED custody of Yes Bank founder Rana Kapoor.
Sharad Pawar Demands Answers on Yes Bank Fiasco
Speaking about the Yes Bank crisis, NCP Chief Sharad Pawar said that this did not happen in a day and thus, Finance Minister and the bank department need to explain how things reached this point.
Rana Kapoor Produced Before PMLA Court
Yes Bank Founder Rana Kapoor has been produced before a PMLA court in Mumbai at the end of his three-day custody. He was arrested by Enforcement Directorate on Saturday night.
Customers Can Now Use IMPS, NEFT To Pay Dues, Says Yes Bank: Reports
Yes Bank has enabled inward Immediate Payment Service (IMPS) and National Electronic Funds Transfer (NEFT) services, reported ANI.
Yes Bank tweeted that people can now use other bank accounts to send payments towards Yes Bank credit card dues and loan obligations through IMPS and NEFT.
Inward IMPS/NEFT services have now been enabled. You can make payments towards YES BANK Credit Card dues and loan obligations from other bank accounts. Thank you for your co-operation.@RBI @FinMinIndia— YES BANK (@YESBANK) March 10, 2020
BJP Cries Foul Play Over Jagannath Temple Funds in Yes Bank, Seeks ED Probe
The Odisha BJP on Monday alleged a conspiracy behind the deposits of Rs 545 crore of the Shree Jagannath Temple in capital-starved Yes Bank and demanded a probe into it by the Enforcement Directorate, reported PTI.
Senior BJP leader Bijay Mohapatra also claimed the involvement of some members of the Jagannath Temple Managing Committee and two government officials in depositing the funds in the private bank.
The ruling BJD, however, rubbished the allegations and said the saffron party was misleading the people.
The Odisha government had on Sunday sought the Centre's intervention for release of the funds in the interest of devotees.
Yes Bank Debenture Trustee Moves HC on RBI Move to Write-Down AT-1 Bonds
Axis Trustee Services Ltd, a debenture trustee of Yes Bank, on Monday petitioned the Bombay High Court against the Reserve Bank of India's (RBI) proposal to write-down additional tier-1 (AT1) bonds, reported PTI.
The petition is likely to be taken up for hearing by a division bench of Justices K K Tated and S K Kotwal later this week.
The debenture trustee has sought relief against the proposal made by RBI as part of its plan to rescue the private sector lender, which has been put under a moratorium last Thursday.
Don't Indulge in Diversionary Tactics, Answer Why Banks Are Sinking: Cong to PM
The Congress on Monday demanded that Prime Minister Narendra Modi answer as to who was responsible for the Yes Bank crisis instead of adopting diversionary tactics by raising the sale of a painting by Priyanka Gandhi Vadra to the bank's founder Rana Kapoor for Rs 2 crore, reported PTI.
Congress chief spokesperson Randeep Surjewala also raised the issue of Modi addressing a business conference in Delhi sponsored by Yes Bank after the RBI put a moratorium on money withdrawal from the bank.
"Who is responsible for letting the YES Bank sink and people's earnings go down the drain? Was Modi Government sleeping on the wheel or was it complicit in a deliberate sinking of the YES Bank? Modi Ji, you need to answer instead of diverting the issue," he told reporters.
3/4— Randeep Singh Surjewala (@rssurjewala) March 8, 2020
2. Why did the loans given by #YesBank rise by a whopping 100% in just 2 years after Demonetisation i.e from ₹98,210 CR in March 2016 to ₹2,03,534 CR in March 2018?
3. Why did the PM address a conference sponsored by Yes Bank on 6th March, 2020, despite the RBI moratorium? pic.twitter.com/T1YALo9FBA
ED Seizes Painting Given to Rana Kapoor from Priyanka Gandhi
Enforcement Directorate on Monday seized the painting of former PM Rajiv Gandhi bought by Yes Bank founder Rana Kapoor from Priyanka Gandhi Vadra, reported ANI.
A letter written by Priyanka Gandhi Vadra to Kapoor in June 2010 confirmed the sale of the painting for Rs 2 Cr. The painting has been brought to ED office.
Mumbai: ED seizes the painting of former PM Rajiv Gandhi bought by #YesBank founder Rana Kapoor from Priyanka Gandhi Vadra. A letter written by Priyanka Gandhi Vadra to Kapoor in June 2010 confirmed the sale of the painting for Rs 2 Cr. The painting has been brought to ED office. pic.twitter.com/KhvyyLhXlh— ANI (@ANI) March 9, 2020
Hopeful of Moratorium Being Lifted This Week: Yes Bank Administrator
Beleaguered private-sector lender Yes Bank is hopeful of the moratorium being lifted by this Saturday, its RBI-appointed administrator Prashant Kumar said on Monday, PTI reported.
He told PTI that the final approval from the Reserve Bank to the SBI-led resolution plan would result in Yes Bank coming out of the moratorium.
He also made it clear that the lifting of the restrictions does not hinge on capital raising plan.
Kumar, former chief financial officer of SBI, however, said that the bank continues to look for capital and called it one of his top priorities along with restoring depositors' confidence.
CBI Issues Look Out Circular Against 7 Accused in Yes Bank Scam
CBI on Monday issued a look out circular against seven accused in the Yes Bank scam, including its co-founder Rana Kapoor and his family members, to prevent them from leaving the country, officials said.
The agency has booked Kapoor, his wife, Bindu, and daughters Roshini, Raakhe and Radha, besides DHFL promoter Kapil Wadhawan and Dheeraj Wadhawan, promoter of RKW Developers, they said.
The look out circular (LOC) was issued against all these seven accused to prevent any attempts to leave the country, the officials said.
The Enforcement Directorate has already issued an LOC on the basis of which Kapoor's daughter Roshini was stopped at the CSM International Airport, Mumbai, from leaving for London, they said.
CBI Searches Underway at 7 Locations, Including Rana Kapoor's Residence
The Central Bureau of Investigation on Monday, carried out searches at seven locations in Mumbai in connection with a case against Yes Bank founder Rana Kapoor, reports ANI.
Searches are underway at DHFL office, office of Doit Urban Ventures (India) Pvt Ltd, office of RKW Developers Pvt Ltd, residence of Rana Kapoor in Worli, residence of Kapil Wadhawan in Bandra West, Rana Kapoor's daughters Rakhi Kapoor Tandon's and Radha Kapoor Khanna's residences
No Material Impact of Yes Bank Crisis on STFC: S&P
S&P Global Ratings on Monday said Shriram Transport Finance Company (STFC) will not be materially affected by the troubles at Yes Bank as the firm's exposure is currently less than 0.5 percent of its net worth.
Earlier during the day, STFC said it has a small exposure of Rs 50 crore to Yes Bank's hybrid securities in the form of upper Tier II bonds. The finance company had made this investment in 2010.
"S&P Global Ratings believes STFC's low exposure to Yes Bank's hybrid securities will shield its financial profile. STFC does not hold any Additional Tier 1 (AT1) capital instruments of the bank," the rating agency said in a release.
Investors' Total AT-1 Bond Exposure to Indian Banks at Rs 93,000 Crore: ICRA
Investors have total bets of over Rs 93,000 crore on the additional tier-I bonds in Indian banks and a complete write-down proposed in the Yes Bank restructuring may lead to risk aversion, according to a report by domestic rating agency ICRA.
The report comes two days after IndusInd Bank virtually dropped a plan for the issue of the AT-1 bonds by deferring a board meet following the Yes Bank package by the Reserve Bank of India (RBI), implementation of which is set to erode investments.
As part of the SBI-led restructuring package announced by the RBI, there is a proposal to write down the entire outstanding on AT-1 bonds, which has been pegged at Rs 8,695 crore by ICRA on Monday. Investors have reportedly approached the banking regulator seeking help.
The proposal is "likely to further increase the risk aversion of investors as the investors will factor in a higher probability of write-downs on these bonds", ICRA said in the report.
Working to Restore All Services: Yes Bank Administrator
RBI-appointed Yes Bank administrator Prashant Kumar on Monday said the lender is working to restore all banking services for its customers as as soon as possible.
"I think for us, the first priority is the customers and how to provide the seamless business to our customers and like you must have seen on the very first day, all our ATMs were up for the customers," Kumar said in an interview to a TV channel.
He said, since Saturday evening even the ATMs of other banks were available for customers for cash withdrawal.
"And in our branches, our staff is reaching out to customers. They are dealing with their issues. I would also like to take this opportunity to thank all our customers who have really cooperated with us, who have shown lot of patience. And I think this is the faith in the brand of Yes Bank," Kumar told CNBC TV 18.
CBI Carries Out Searches at Seven Locations in Mumbai
The Central Bureau of Investigation on Monday, 9 March, carried out searches at seven locations in Mumbai in connection with a case against Yes Bank founder Rana Kapoor, reports ANI.
Teams of CBI officers are carrying out operations at the residence and official premises of the accused in Mumbai, officials said as per PTI.
CBI Files FIR Against Rana Kapoor, Others
The CBI has named in the FIR five companies, seven individuals, including Kapoor's wife and three daughters, and unidentified people.
Besides Rana Kapoor, the agency has booked his wife Bindu, daughters Roshini, Raakhe and Radha.
Kapil Wadhawan, promoter of Dewan Housing Finance Corporation Limited (DHFL) and Dheeraj Rajesh Kumar Wadhawan, Director of RKW Developers Private Limited, a company linked to DHFL have also been named as accused.
Yes Bank Founder Rana Kapoor Sent to ED Custody Till 11 March
Yes Bank founder Rana Kapoor was arrested by the Enforcement Directorate (ED) under money laundering charges, has been sent to custody till 11 March.
YES Bank Share Price Rises 30% on Monday
Shares of Yes Bank on Monday zoomed over 30 per cent after State Bank of India (SBI) said it will pick up 49 per cent stake in the cash-strapped lender for Rs 2,450 crore.
The scrip witnessed a sharp rise, spiking 29.63 per cent to Rs 21 on the BSE.
On the NSE, it jumped 32.20 per cent to Rs 21.35.
SBI on Saturday announced it will pick up a 49 per cent stake in Yes Bank for Rs 2,450 crore and clarified that all the deposits and liabilities of the reconstructed bank will continue in the "same manner".
Odisha Govt Seeks Centre's Intervention to Release Lord Jagannath's Funds in Yes Bank
Under attack by opposition parties over deposits of Rs 545 crore of Lord Jagannath in capital-starved Yes Bank, the Odisha government on Sunday, 8 March sought the Centre's intervention for release of the funds in the interest of devotees.
Odisha's Finance Minister Niranjan Pujari urged the Centre to give necessary instruction to the Reserve Bank of India (RBI) to allow release of the amount deposited with the crisis-hit lender.
In a letter to Union Finance Minister Nirmala Sitharaman, Pujari said various funds related to Shree Jagannath Temple in Puri are managed by a committee of the Shree Jagannath Temple Administration (SJTA).
"Out of these funds, an amount of Rs 545 crore has been deposited with Yes Bank, Puri in the form of TDRs," he said.
ED Stops Rana Kapoor's Daughter From Taking Flight to UK
The Enforcement Directorate on Sunday, 8 March stopped Yes Bank founder Rana Kapoor's daughter from taking a flight to London as she is required to join the probe in a money laundering case against her father, officials said.
They said Roshni Kapoor was disallowed to board the flight from Mumbai airport on the basis of a Look Out Circular (LoC) issued against her by the central agency.
The LoC requires immigration authorities to intimate the issuing agency before they allow the passenger to travel to any international or domestic location.
She was to take a flight to London, the officials said. The reasons for her travel were not known immediately.
CBI Starts Probe Into Yes Bank Case
CBI has started probing into Yes Bank affairs as officials start collecting documents, reported news agency PTI quoting sources.
SBI to Own 245 Crore Shares Worth Rs 2,450 Crore in Yes Bank
The State Bank of India (SBI) has said it will be issued 245-crore shares at a price of Rs 10 each for Rs 2,450 crore in Yes Bank.
These shares will translate into a 49 percent stake into the reconstructed bank.
SBI shall not reduce its holding below 26 percent before completion of three years from the date of infusion of the capital, the country's largest lender said in a statement.
It further said that the new board of Yes Bank will have CEO and MD, non-executive chairman and non-executive directors.
"All the employees of the reconstructed bank shall continue in its service with the same remuneration and on the same terms and conditions... at least for a period of one year," SBI said.
JD(S) Chief Attacks Centre Over Yes Bank Issue
Former Prime Minister HD Deve Gowda accused the Narendra Modi-led government at the Centre of ‘destabilising’ the Reserve Bank, by ‘attacking’ its autonomy and ‘loosening’ its system.
The JD(S) chief’s comments in the backdrop of the Yes Bank crisis.
“Vajpayee was Prime Minister for six years, Manmohan Singh for ten years, this is the sixth year for Modi. During his (Modi's) period Reserve Bank has become like a department of Finance Ministry. It had statutory provisions, autonomy (in the past)...” Gowda said.
ED Searches the Residence of Kapoor's 3 Daughters
While the Enforcement Directorate kept grilling Yes Bank founder Rana Kapoor in Mumbai, the central probe agency widened its probe and carried out searches at the residence of his three daughters, reported IANS.
An ED source said the central probe agency has expanded its probe in the Yes Bank scam and is carrying out searches at three locations in Mumbai and New Delhi.
The source told the news agency that the searches are being carried out at the residential premises of all three daughters – Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor.
'Hindus in Danger in True Sense', Says Maharashtra Congress Spokesperson
With some private sector lenders including Yes Bank facing liquidity crisis, Maharashtra Congress spokesperson Sachin Sawant said Hindus are in danger in a “true sense” under the Narendra Modi government and claimed that majority of the hassled account-holders belonged to the majority community.
Sawant claimed that funds worth Rs 545 crore of Lord Jagannath Temple of Odisha are deposited in the crisis-hit Yes Bank. “Even Gods are in danger on the Centre’s watch,” he added.
SBI Rescue Plan 'Bizarre': Chidambaram Targets BJP on Yes Bank Fiasco
Hitting out at the Bharatiya Janata Party (BJP), former Finance Minister P Chidambaram said that the SBI rescue plan proposed by the government is ‘bizarre’. He also said that despite the Central bank monitoring the situation, the loan book of the bank has increased.
“How did the loan increase from Rs 55,000 crore in March 2014 to Rs 2,41,000 crore in March 2019,” Chidambaram said questioning the government blaming the BJP goverment for the ‘mismanagement of financial institutions’.
Speaking about the resolution plan proposed by SBI for Yes Bank, Chidambaram said that it would be better for ‘SBI to take over on RBI’s orders’.
P Chidambaram to Address a Press Conference at 4 PM
Senior Congress leader and former Finance Minister P Chidambaram will address a press conference at 4 pm.
Will address a press conference at 4 pm today at AICC on the YES Bank fiasco— P. Chidambaram (@PChidambaram_IN) March 7, 2020
LIC May Be Roped in to Rescue Yes Bank: Report
State-owned insurer Life Insurance Corporation (LIC) may consider joining RBI efforts to rescue Yes Bank, reported IANS.
This can help to increase capital infusion under the draft scheme to rescue Yes Bank designed by the Reserve Bank of India (RBI).
Official sources said that RBI, SBI and finance ministry officials were in touch with the insurer to see its interest to participate in the scheme. LIC spokesperson, however, could not be reached for comments.
Yes Bank Crisis 'Worst Example of Crony Capitalism': CPI(M)
The CPI(M) termed the Yes Bank crisis the "worst example of crony capitalism" and said it raised disturbing questions about the "failure" of the Reserve Bank of India to intervene in time.
"The bank was saddled with huge loans given to corporates favoured by the ruling regime. Some of these corporate debtors like Anil Ambani were backed to the hilt by the (Narendra) Modi government, despite their well-recorded precarious financial health,” the party said in a statement.
"The collapse of Yes Bank has raised many disturbing questions about the functioning of private banks and the failure of the regulator, the Reserve Bank of India, to intervene in time. The Yes Bank episode is the worst example of crony capitalism," it said.
Evaluating Draft Reconstruction Scheme for Yes Bank: SBI Chief
SBI Chairperson Rajnish Kumar on Saturday, 7 March, said the bank has received the draft scheme of reconstruction for crisis-hit Yes Bank and that bank officials are evaluating it with due diligence.
"We have received draft scheme of reconstruction for Yes Bank. Our investment and legal team is doing due diligence," Kumar told reporters here.
He also said many potential investors have approached SBI after seeing the draft scheme. Kumar further said the interest of shareholders will not be compromised.
Rana Kapoor Taken to ED Office for Questioning
Crisis-ridden Yes Bank founder Rana Kapoor has been taken to the Enforcement Directorate office in Mumbai for questioning, ANI reported on Saturday, 7 March, a day after agency raided his Mumbai residence in connection with a money laundering probe.
. Read more on India by The Quint.RSS & BJP’s Nehru-Netaji ‘Cosplay’: Irony Dies a Thousand DeathsYes Bank Board Reconstituted With Immediate Effect . Read more on India by The Quint.