Yes Bank impact: Private lenders may hit fund bump
Private sector banks, especially the smaller ones, are likely to face the heat of the Yes Bank collapse, as funds will be hard to come by in the wake of the trust deficit — the most important component of the financial system.
According to top executives from five different fund houses, many big-ticket investors have become averse to parking their monies with private banks after the collapse of Yes Bank. As of date, at least three private sector lenders are actively in search of funds to buffer up their capital base — which has been depleted due to stress in their loan-books.
Read the full report here
Yes Bank's major defaulters:
Reliance Anil Ambani Group: Rs 12,800 crore
Essel Group: Rs 8.400 crore
DHFL Group: Rs 4,735 crore
IL&FS: Rs 2,500 crore
Jet Air: Rs 1,100 crore
Cox & Kings, Go Travel: Rs1,000 crore
B M Khaitan Group: Rs 1,250 crore
Omkar Realtors: Rs 2,710 crore
Radius Developers: Rs 1,200 crore
C G Power Thapar Group: Rs 500 crore
Good morning readers and welcome to our live coverage of Yes Bank crisis. Stay tuned for live updates.
After infusion, YES Bank's net worth is likely to go up to Rs 16,800 crore
YES Bank valuation, as of date, stands at a negative Rs 4,600 crore -- a precariously dangerous situation for a bank.
After infusion, the net worth is likely to go up to Rs 16,800 crore
"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," said Yes Bank on Twitter.
Loans and credit card dues
Customers can now pay their Yes Bank credit card dues and loans through the IMPS and NEFT services from other banks as well, according to reports.
Govt has no plans to bring other private sector lenders under scrutiny post Yes Bank crisis: Source
The government is not considering to bring other private-sector lenders under scrutiny in the aftermath of Yes Bank crisis that has left lakhs of customers worried if their hard-earned money is really safe in banks
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.
Good morning readers and welcome to our live coverage of Yes Bank crisis. Stay tuned for live updates.
CBI issues look out circular against 7 accused in Yes Bank scam
The CBI carried out searches at seven locations in Mumbai on Monday in connection with the Yes Bank scam pertaining to the Rs 600 crore alleged bribe to its co-founder Rana Kapoor's family by scam-hit DHFL and issued a look out circular against the accused to prevent their escape, officials said.
Financial audits failed repeatedly, govt should make cost accounting mandatory: ICMAI
Financial audits have failed repeatedly and the government should make cost accounting mandatory to keep a tab on non-performing assets at lenders, which can prevent cases like Yes Bank, the Institute of Cost Accountants of India (ICMAI) said on Monday.
Yes Bank shares zoom over 32% after SBI statement
Shares of Yes Bank on Monday zoomed over 32 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.
Priyanka's Rs 2-crore painting lands Cong in Yes Bank soup
At a time when it is trying to corner the ruling BJP on Yes Bank crisis, Congress has landed into an unsavoury controversy over the sale of a painting by it general secretary Priyanka Gandhi Vadra, which was given by acclaimed painter M F Hussian to former Prime Minister late Rajiv Gandhi.
Yes Bank will not be merged with SBI, says Prashant Kumar
India's Yes Bank will not be merged with State Bank of India, which is set to infuse funds in the beleaguered lender, the newly appointed administrator leading the rescue plan said in a television interview on Monday.
Not just DHFL, CBI suspects Rana Kapoor received kickbacks from others too
The CBI suspects that Yes Bank founder Rana Kapoor obtained kickbacks through entities controlled by his family like the way he received "undue pecuniary advantage" to the tune of Rs 600 crore from Dewan Housing Finance Corporation Ltd (DHFL) to invest Rs 3,700 crore in short term debentures in the latter.
Rana Kapoor, his wife, and all three daughters have been named in the FIR
FIR copy in Rana Kapoor Yes Bank case
The actual cost of Yes Bank collapse
Yes Bank has become the fourth financial sector institution to collapse since 2018. Others on the list include IL&FS, Dewan Housing and PMC Bank. There have been collapses in the non-financial sector meanwhile like Jet Airways.
Indians, it may be argued, have become blasé about corporate collapses, so frequently have they occurred. In a way, it is so. The collapse of a non-financial institution surprises the public but does not make the event a traumatic one, except for those who lose jobs.
Read the full report here
The Rs 50,000 withdrawal cap on Yes Bank's depositors may be withdrawn as early as March 15, its administrator Prashant Kumar said in an exclusive interview to CNBC-TV18.
Yes Bank: How to turn a banking rescue into a crisis
Bungling the rescue of a bank that hasmore than $20 billion in depositsis probably the costliest own goal India has scored since its foolish November 2016 ban on most currency notes.
Arm-twisting government-controlled State Bank ofIndia to inject capital intofailing Yes Bank Ltd. was the only option left for New Delhi. But the halfhearted bailout just may turn abad dream for saversinto a nightmare for the financial system.
The Central Bureau of Investigation (CBI) is conducting searches at seven locations in Mumbai, in connection with a case against Yes Bank founder Rana Kapoor.
Yes Bank: BJP, Congress lock horns over M F Hussain painting sold by Priyanka Gandhi to Rana Kapoor
A war of words broke out between the BJP and the Congress on Sunday over the Yes Bank crisis with the ruling party seeking to link it with the Gandhi family, while the opposition wondered if the prime minister and finance minister were "complicit" as the bank's loan book grew manifold.
Posting on Twitter a clip of a news channel report that Rana Kapoor, the arrested Yes Bank founder, had bought a painting from Congress leader Priyanka Gandhi Vadra, BJP's information and technology wing in-charge Amit Malviya alleged that every financial crime in India has "deep links" with the Gandhis.
Read the full report here
Yes Bank rescue plan is a messy experiment
It’s a great big maybe for the Yes Bank bailout. Under a draft proposal released by the central bank on Friday, State Bank of India would buy as much as 49% of the troubled lender in a complicated two-step deal. It’s a creative effort to provide support while keeping the private-sector bank out of government control, but the contortions involved might not shore up confidence. (Reuters)
Economic Offence Wing of Central Bureau of Investigation (CBI) filed FIR on March 7 against Yes Bank founder Rana Kapoor, Doit Urban Ventures (company linked to Rana Kapoor family), Kapil Wadhawan (Dewan Housing Finance Ltd Chairman) and others under Prevention of Corruption Act.
CBI files FIR against Rana Kapoor
Economic Offence Wing of Central Bureau of Investigation (CBI) filed FIR on March 7 against #YesBank founder Rana Kapoor, Doit Urban Ventures (company linked to Rana Kapoor family), Kapil Wadhawan (Dewan Housing Finance Ltd Chairman) and others under Prevention of Corruption Act. (ANI)
Here's how Yes Bank founder Rana Kapoor reacted as he faces his worst nightmare
The high-profile banking maverick and founder of Yes Bank, Rana Kapoor, is now behind the bars on charges of alleged money laundering.
Kapoor and his family is facing investigations for investments over Rs 2,000 crore and shell firms, besides other assets including paintings. After grilling him for over 30 hours, the Enforcement Directorate formally arrested the 62-year-old Kapoor in the wee hours of Sunday for violation of Prevention of Money Laundering Act (PMLA).
Read the full report here.
While corporate cronies of govt (Ambani, Chandra et al) looted #YesBank, the govt is making small depositors & SBI (with our money) to pay for it. "Na Khaoonga, Na khane doonga"? asks Prashant Bhushan.
Yes Bank crisis: The banker who crushed his ‘diamonds’
On September 28, 2018, after he announced that he was going to step down from YES Bank, Rana Kapoor went on an emotional tirade on Twitter. In a series of tweets, he had claimed: “Diamonds are Forever. My promoter shares of YES Bank are invaluable to me.”
Read the full report here.
State Bank of India is expected to submit to RBI a revival plan for Yes Bank today.
Good morning readers and welcome to our live coverage of Yes Bank crisis. Yes Bank founder Rana Kapoor has been arrested by Enforcement Directorate (ED) and will be kept in custody till March 11. A Look Out Notice has also been issued against his daughter. Stay tuned for live updates.
Rana Kapoor’s daughter Roshini Kapoor was stopped from flying to London at the Mumbai Airport
Rana Kapoor’s daughter was stopped at the Mumbai International Airport today while boarding a flight to London. A Look Out Notice has been issued against RoshiniKapoor.
CBI register case against Rana Kapoor, DHFL, Doit Urban Ventures
CBI registers case against Rana Kapoor, former MD of Yes Bank, DHFL and Doit Urban Ventures Pvt Ltd. Accused charged under Section 420 of IPC, Sec 7, 12 & 13 of PC Act read with 120 B.
Are your deposits safe? RBI clarifies
CBI begins probe into Yes Bank's affairs, officials begin collecting documents
Indian banks well capitalised, no reason to worry, says CEA K Subramanian
Allaying concerns over banking sector health in the wake of Yes Bank fiasco, Chief Economic Adviser Krishnamurthy Subramanian on Sunday said Indian banks are well capitalised and there is no reason to worry.
Indiabulls Housing says Yes Bank owes it Rs 662 cr in bonds; No term loans outstanding
Indiabulls Housing Finance on Sunday said Yes Bank owes Rs 662 crore in the form of bonds to the company and it has no term loans outstanding from the lender.
Dozen shell firms, 44 costly paintings and Rs 2,000 crore investments of Rana Kapoor under ED scanner
Investments worth over Rs 2,000 crore, 44 expensive paintings and a dozen alleged shell firms are at the heart of ED's investigations against Yes Bank founder Rana Kapoor who was arrested by the agency on Sunday on money laundering charges, officials...
Read more
PMC Bank, Yes Bank scams linked to Wadhawan family
The fiscal year 2019-20 has not been great forIndia's banking sector.Two big banks - Punjab & Maharashtra Co-operative Bank and Yes Bank tumbled in a matter of six months.
Rana Kapoor to be in ED custody till March 11
Mumbai's Special Holiday Court sends Yes Bank founder Rana Kapoor to Enforcement Directorate custody till March 11. He was yesterday arrested by the ED and produced today in the Court.
Rana Kapoor would be taken to hospital for mandatory medical check up and then to court
Markets to remain under pressure amid Yes Bank crisis, coronavirus concerns: Analysts
Markets are likely to remain under pressure in the holiday-shortened week ahead with investors tracking the Yes Bank crisis and the coronavirus outbreak which have cast a shadow over trading sentiment, analysts said.
Rana Kapoor's wife Bindhu arrives at the ED office before he is produced in court
Explained: What went wrong with Yes Bank?
The Reserve Bank of India (RBI) on March 5 placed Yes Bank under moratorium and restricted withdrawals to a maximum of Rs 50,000, sending its customers into a wave of confusion and panic.
JD(S) chief H D Deve Gowda attacks Centre over Yes Bank issue
Former Prime Minister H D Deve Gowda on Saturday accused the Narendra Modi-led government at the Centre of 'destabilising' the Reserve Bank, by 'attacking' its autonomy and 'loosening' its system.
Yes Bank withdrawal cap: Full list of Yes Bank branches, Yes Bank ATMs
Following a brief shortage of money in ATMs, Yes Bank made a surprise announcement that account holders can once again withdraw funds.
In light of this, here is where you can locate your nearest Yes Bank branch or ATM.
Rana Kapoor currently held in the Ballard Estate office of ED in south Mumbai; Likely to be produced in court around 11 AM
Rana Kapoor arrested by ED
After two days of grilling, Yes Bank founder Rana Kapoor has been arrested by the Enforcement Directorate.
Yes Bank to announce quarterly results for December quarter on March 14. Earlier, the bank had deferred it's quarterly results by a month's time.
Yes bank depositors can now withdraw cash from nearest ATM
YesBank says customers can now withdraw money at ATMs using YesBank debit cards.
The depositors, who were trying to withdraw money, were facing huge inconvenience till now, as they weren't able to withdraw money using YesBank cards.
Sources in the banking sector say that RBI had told YesBank not let customers withdraw money from the ATMs. As a result of which, NPCI had taken YesBank ATMs offline.
Customers can locate their nearest YesBank ATMs at this link.
Yes Bank has about 1,800 ATMs across the country.
New board of Yes Bank to have CEO and MD; employees of reconstructed bank to be in service at same remuneration for at least 1 year: SBI
SBI will be issued 245 crore shares of Yes Bank at a price of Rs 10 each for Rs 2,450 crore: Statement
ED raids homes of Rana Kapoor's daughters
Resolution plan proposed by SBI for Yes Bank is bizarre when bank's net worth is perhaps 0. It would be better for SBI to take over, on RBI's order, Yes Bank's loan book at Rs1&to assure depositors that their money will be returned: P Chidambaram
State Bank of India (SBI) should make every effort to recover as much as possible of the outstanding loans of Yes Bank: P Chidambaram
We will hold the Govt and RBI responsible, the govt and RBI must find out who is responsible, says P Chidambaram
We will hold the Govt and RBI responsible, the govt and RBI must find out who is responsible, says P Chidambaram
Completely improper on my part to fix responsibility: PM Modi
When we (UPA ) were in offfice was Rs 55,633 crore, says P Chidambaram
No bank in India has doubled its loan book in 2 years, says P Chidambaram
This points towards mismanagement, says P Chidambaram on Yes Bank crisis
I don't wish nor predict a financial emergency: P Chidambaram
If you simply read the balance sheet, you would know that loans are jumping at 35% per year
Depositors must be fully protected, says P Chidambaram
Plan proposed yesterday seems bizarre: P Chidambaram
Best judge of the economy is the market, not the Finance Minister, says P Chidambaram
Better option would be to take over Yes Bank: P Chidambaram
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.
Rajkot Municipal Corporation seeks release of Rs 160 cr Smart City Mission fund in Yes Bank
The Rajkot Municipal Corporation has written to the Reserve Bank for the release of the Smart City Mission fund worth about Rs 160 crore stuck in the troubled private sector lender Yes Bank, Gujarat deputy Chief Minister Nitin Patel said on Saturday.
Don't worry: SBI Chairman Rajnish Kumar tells nephew with Yes Bank account
Driving home on the point that the depositors of Yes Bank are safe, SBI chief Rajnish Kumar said that his nephew himself has an account with Yes Bank.
"Yesterday, when all this news was there, I received the first call from my nephew....he has an account with the Yes Bank...I have asked him not to worry," he said.
Rana Kapoor going to ED office accompanied by sleuths in Mumbai. (DH Photo)
Yes Bank and Rana Kapoor are different: SBI chief
SBI Chairman Ranjish Kumar made it clear that it was necessary to distinguish between an individual and organisations. When asked whether the investors would come on board in the wake of ED investigations on Rana Kapoor, he said: "Let's distinguish between person and enterprise. Yes Bank is an entity, Rana Kapoor is an individual. If an individual has done wrong, he would have to pay a price."
My nephew has an account in Yes Bank: SBI chief
Driving home on the point that the depositors of Yes Bank are safe, SBI chief Rajnish Kumar said that his nephew himself has an account with Yes Bank. "Yesterday, when all this news was there, I received the first call from my nephew. He has an account with the Yes Bank. I have asked him not to worry," he said.
Chaos grips as YES Bank ATMs stop dispensing cash
An utter chaos prevailed at branches and ATMs of YES Bank across the country on Friday as depositors rushed in panic to withdraw their money.
After RBI placed curbs on withdrawals from the Bank and sacked its board, the customers of the bank rushed to automated teller machines (ATMs) and branches. As the queues at the Bank’s branches and ATMs bulged through the day, the bank ran short of cash and ATMs stopped dispensing cash -- leaving the customers in further misery.
Read the full report here
The ED has been scrutinising YES Bank's links with DHFL.
DHFL sanctioned Rs 600 cr loan to Rana Kapoor-controlled Doit Urban Ventures, say ED sources
DHFL had sanctioned a loan of Rs 600 crore to Doit Urban Ventures which was reportedly controlled by Rana Kapoor family. This happened at a time when DHFL failed to pay its due to Yes Bank, according to ED sources. Yes Bank debt exposure in DHFL in terms of short term debentures between April-July 2018 was Rs 3,700 crore.
Yes Bank also gave a loan of Rs 750 crore to RKW Developers. RKW Developers and DHFL are under scanner for financing Dawood's aide Iqbal Mirchi who purchased properties in South Mumbai. DHFL chairman Kapil Wadhawan had been arrested by ED and brother Dheeraj Deewan has been questioned.
Evaluating draft reconstruction scheme for Yes Bank: SBI chief Rajnish Kumar
SBI Chairman Rajnish Kumar on Saturday said the bank has received the draft scheme of reconstruction for crisis-hit Yes Bank.
Bank officials are doing due diligence of the draft scheme, he added. "We have received draft scheme of reconstruction for Yes Bank. Our investment and legal team is doing due diligence," Kumar told reporters here.
The interestof SBI investors won't be compromised, says SBI Chief.
The total quantum of investment in Yes Bank is at Rs 2,450 crore, says Rajnish Kumar.
Depositors money is not at all at risk, Kumar tries to allay fears. "Customers should be rest assured, their money is not at risk. The Finance Minister and Governor have assured that," says SBI Chairman.
We will work overtime to commit to RBI deadline for resolution plan, says SBI chief.
A plan has been received by SBI and the legal team is working on the plan. We had informed through the stock exchange that SBI board has given in-principle approval of exploring possibility of picking upto 49% stake in Yes Bank. Many potential investors have approached us, there are some good names says SBI Chairman
There is considerable investor interest in the financial sector in the country, says SBI chief. With regards to SBI, he says, "We may present a plan with some other names."
SBI board has given in-principle approval to pick up Yes Bank's 49% stake, says SBI Chairman Rajnish Kumar.
Our investment and legal team looking into RBI draft proposal, says SBI Chairman.
SBI Chairman will address the presser on Yes Bank crisis shortly.
JUST IN | ED raids at the residence of Rana Kapoor is still continuing.
Paytm Payments Bank restricts credit into Yes Bank accounts to safeguard users’ money
Paytm Payments Bank Ltd (PPBL), has restricted transaction settlements, including UPI, into Yes Bank accounts to safeguard their users’ money.
Post the RBI moratorium on withdrawal of money from Yes Bank, PPBL has taken this step to ensure that its users’ money doesn’t get stuck in their Yes Bank accounts where they are unable to move their money out.
Read the full report here
Yes Bank biggest lender to loan defaulter Cox & Kings
Yes Bank was the biggest lender to loan defaulter travel firm Cox & Kings with total claims of over Rs 2,285 crore, according to a list of financial creditors prepared by the resolution professional of the debt-ridden firm.
Financial creditors have submitted a claim of over Rs 5,911 crore for debt they provided to Cox & Kings, according to a regulatory filing by the company.
Cox & Kings is currently going through the corporate insolvency resolution process.
HDFC Mutual Fund's exposure to Yes Bank at Rs 67 crore
HDFC Mutual Fund on Friday said its exposure to Yes Bank's stocks is Rs 67 crore.
"Our present exposure in Yes Bank is only Rs 67 crore as on March 5," HDFC Mutual Fund said in a late-night statement.
According to Morningstar data, exposure of the mutual fund house to the bank's equities was Rs 142.02 crore as of January 31, 2020.
DH Cartoon by Sajith Kumar
- SBI chairman Rajnish Kumar to address a press conference at 10: 15 am.
Good morning readers and welcome to our live coverage of Yes Bank crisis. The Enforcement Directorate has registered a PMLA case against Yes Bank founder Rana Kapoor. They also raided his house last night. Stay tuned for live updates.
Enforcement Directorate registers case under the Prevention of Money Laundering Act against Yes Bank founder Rana Kapoor
Enforcement Directorate searches Yes Bank founder Rana Kapoor's house in Mumbai, says officials
"I am not here to continue carrying the stories of legacy. Yes, the Indian banking system has had severe challenges thanks to the way in which the government which existed between 2004-14 had handled the matter. I have reasons to put the blame on them," she said.
Sitharaman went on to question Chidambaram's handling of the crisis at two banks under the UPA-1 rule. (PTI)
'Liar liar the economy is on fire!'
The Congress party also took it to twitter to slam the Finance Minister Union Western Bank and YES Bank acquisition over the UPA government and tweeted, "
Liar liar the economy is on fire!
Nirmala ji, are you so bereft of ideas on how to fix the economy that you have to resort to blatant lies.
Were demo & GST launched by the UPA? Did NPA crisis explode during UPA? Did Yes Bank, PMC, IL&FS & SGRSB collapse during UPA?"
Govt is nationalising losses, privatising profits by asking SBI to take over: MSBEF
The government is following the principle of "nationalising of losses" and "privatisation of profits" by asking the State Bank of India to bail out Yes Bank, according to Maharashtra's apex banking employees' federation.
"The has asked public sector SBI to bail out private sector Yes Bank," said Maharashtra State Bank Employees Federation general secretary Devidas Tuljapurkar.
The MSBEF demanded that the government should book the management of Yes Bank and make it accountable answerable for the mess.
"The corporates who have looted the bank should be put behind bars," he said.
Tuljapurkar said the RBI with its action of moratorium has created panic with the depositors but in the market everybody was contemplatingthe background why RBI has not intervened before. "RBI also should be made accountable. On thebackground RBI should carry out a special inspection of all the private sector banks. If SBI can bail out Yes Bank then why not PMC, Pen Urban or Rupee Bank. What sin depositors of those banks have committed? On the background revival of FRDI Bill will lead to insecurity with the bank depositors and adversely affect on rate of savings which may have a far-reaching effect on the economy," he said.
"This is utter failure of neoliberal policies on which government should revisit at least now," he added.
According to a gazette notification by the Ministry of Finance, no person can withdraw an amount in access of Rs 50,000 crore from the bank from March 5 to April 3 irrespective of the number of accounts he/she holds.
Sanjeev Zarbade, VP PCG Research, Kotak Securities says:
“The BSE-30 Index declined 1.9% in the current week as the spread of the Covid-19 virus across geographies spooked market participants fearing the risk of an economic slowdown in developed markets. Global markets were mixed though, with the supposed epicenter of the Corona Virus rallying 5% during the week. The Federal Reserve cut its interest rates as an emergency move. State Bank of India Tata Steel and Bajaj Finance were among the top losers in the BSE-30 Index, while Power Grid, Sun Pharmaceuticals and Nestle India were among the top gainers. The major development during the week was the bailout of YES Bank by SBI and the related sharp price movements in both the stocks, especially that of YES Bank stock. Even SBI stock corrected on account of uncertainty in the amount of funds that it will have to commit to revive YES Bank. On the economy front, real GDP growth moderated to 4.7% in 3QFY20 as against an upward revised print of 5.1% in 2QFY20. FPIs sold equities worth US$1.4 bn over the past five trading sessions while DIIs bought US$2.2 bn worth of equities in the same period.”
P Chidambaram also said, "Listened to FM’s address to the media. It is obvious that the crisis has been in the making since 2017 and the government did practically nothing except 'talk to the RBI'."
"As expected, the FM has indirectly blamed the UPA for the near collapse of YES Bank contrary to her own claim that the crisis started in 2017," he said.
"Did you notice that the FM did not acknowledge the numbers of the loan book of YES Bank? Did you notice that FM did not explain how the loan book miraculously jumped from Rs 55,633 crore in March 2014 to Rs 2,41,999 crore in March 2019," he tweeted.
Reacting to FM Nirmala Sitharaman's presser, Congress senior leader and former Finance Minister P Chidambaram said, "What is the government doing today? Is the government not merging weak public sector banks with stronger public sector banks?
Naturally, FM blamed the “legacy” of UPA. She will say that for the rest of the tenure of the BJP government!"
"The decisions to merge were taken by RBI Governors Dr C Rangarajan and Dr Y V Reddy. Why doesn’t the FM call them and ask them to explain their decisions? She might find that the decisions were correct and taken by competent Governors," he said in a tweet.
"FM was focused on what happened during the UPA. What happened was UPA did not allow any bank to reach a state of collapse. Under UPA, weak banks were merged with other banks well in time to avoid a crisis," he said.
Talking about the Union Western Bank merger lapse during the UPA government's tenure, FM Nirmala Sitharaman said, "They were the same people who handled the United Western Bank, which was almost on the verge of collapsing in 2006, forcefully merged with IDBI. And today, if I have problems restoring some good health of IDBI, i am giving a pointed example of how self-appointed competent doctors had handled United Western's merger with IDBI. IDBI went down and United Western was already challenged.
Global Trust Bank, July 2004, was merged with Oriental Bank of Commerce.
Ganesh Bank of Kurundwar was merged with a private bank, Federal Bank in January 2006. In all 3, you immediately merged and washed your hands off.
How many people were held accountable for the challenges faced by all such banks?"
The Indian banking system has had severe challenges due to the banking system prior to 2014, said FM Nirmala Sithraman. "I see the opposition very keen to point a finger at us. Not here to continue carrying the stories of legacy. Yes, the Indian banking system has had severe challenges, thanks to the way in which the govt between 2004-14 handled the matters. The so-called, self-appointed doctors are saying this, they are saying Yes Bank is no bank," said the Finance Minister.
"Our priority is to ensure that Banks don't collapse, and the interest of the account holders is in place," she said.
"I see the opposition is being keen at pointing fingers at the government," FM Nirmala Sitharaman said at the press conference in New Delhi today.
"Anil Ambani Group, Essel, DHFL, ILFS, Vodafone are some of very stressed corporate whom Yes Bank lent," said Nirmala Sitharaman.
"I am closely monitoring every institution that requires attention," she said.
"Bad loans were given before 2014. Exports of YES Bank, to weak businesses has been even before 2014," she pointed out.
The Reserve Bank of India has today placed in public domain a draft scheme of reconstruction of the Yes Bank Ltd. The Reserve Bank invites suggestions and comments from members of public, including the banks' shareholders, depositors and creditors on the draft scheme.
FM Nirmala Sitharaman said that theinvestigative agencies saw malpractices of some executives at Yes Bank.
She further mentioned that a fine of Rs 1 crore was imposedon the bank in March 2019.
SEBI also began investigation into the bank from September 2019, she said.
Nirmala Sitharaman requests RBI to identify the cause of the problem, in creating the problem and its improper assessment. She also requested a report from the RBI.
Our govt is committed to ensuring that depositors' interests are safeguarded, said FM.
"I want RBI to ensure that due process of law is set to roll with a sense of urgency so that we should find out as to who led to the problem of this size & magnitude," said the Finance Minister.
"After the administrator does his job, a new board will be put in place. Deposits and liabilities will continue unaffected as before. Employment and salary assured at least for 1 year," said FM Sitharaman.
Attempts to get equity into Yes Bank did not materialise, says FM giving background of RBI action against lender.
In Nov 2019 it was clear Yes Bank was not able to access fund, says FM
Rs 1 crore fine imposed on bank in March 2019, Sebi started investigation in 2019 against insider trading in Yes Bank, says FM
Yes Bank suffered from weak compliance together with risky credit decision and poor governance, says FM
RBI has monitored and acted on malpractices of the bank: Finance Minister
Finance minister speaks on restructuring Yes Bank
State Bank of India has expressed its willingness to make investment in Yes Bank Ltd. and participate in its reconstruction scheme
Yes Bank's bonfire of insanity was left to burn
Late on Thursdayevening in Mumbai, Indiaplaced the troubled private-sectorlender undermoratorium.
Finance Minister Nirmala Sitharaman to hold a presser at 4:30 pm today regarding the YES Bank matter.
Mutual Funds take a hit. Have invested Rs 526 crore in the YES Bank, led by SBI ETF Nifty 50 with Rs 116.61 crore investment.
Here is a list of who owns how much of YES Bank
Hello readers, welcome to our live coverage of the developments in Yes Bank.The Reserve Bank of India on Thursday placed YES Bank under moratorium and restricted withdrawals to Rs 50,000, as the central bank assumed control of the troubled private sector lender. Stay tuned for more updates.
These are some of the companies that have been impacted by the YES Bank moratorium
Chaos grips YES Bank. Marathon meetings by the management as they decide how to go about Mutual Fund redemptions after RBI imposes a cap of Rs 50,000 on withdrawals.
Yes Bank Moratorium: A quick stock at the situation
Yes Bank has been disconnected by all three networks and PhonePe is expected to switch to a new PSP soon. Question is what happens to UPI IDs of the users as they are generated by Yes Bank. Clarity from NPCI is expected soon.
NEFT: No inward credits are coming from Yes Bank. Outward transactions going to Yes bank are also rejected at RBI.
RTGS: Settlement window was already over and hence there was no impact yesterday. IFSC code is blocked at RBI so the transaction may not happen today.
CTS: NPCI has kept a hold on the clearing files. They have informed that all the cheque drawn on YES bank, sent by the collecting banks for clearing is being cancelled in the clearing file. They are going to share a file which will be net of YES bank records. Collecting banks will have to treat all the yes banks cheque as returned. This would also mean that in inward clearing shall not receive any cheque’s from yes bank.
IMPS/UPI: NPCI has already blocked transactions from yes bank.
ATM: NFS network is blocked for yes bank cards, that is, no transactions on other bank ATM for yes bank cardholders.
NACH : NCPI has unwinded the batches and has kept the settlement on hold for yesterday's yesterday's last twobatches. No transactions from today.
People standing in queue to withdraw mony from Yes Bank. (DH Photo)
RBI's resolution plan on Yes Bank likely today, reports CNBC-TV18.
Yes Bank problem bank-specific, not sectoral: SBI chief Rajnish Kumar
A day after the RBI superseded the board of India's fourth-largest private sector lender Yes Bank, State Bank of India (SBI) Chairman Rajnish Kumar on Friday said the problem at hand is lender-specific and not sectoral.
On Thursday, the SBI board gave its "in-principle" approval to exploring investment opportunities in Yes Bank.
I want to assure every depositor's money is safe, and I’m in constant touch with RBI, says Finance Minister Nirmala Sitharaman.
No clue about Yes Bank's situation, says ex-MD Rana Kapoor
First reaction has come from the Yes Bank's co-founder. Former MD Rana Kapoor tries to wash off his hands from the mess at YES Bank. "I have been out of the bank for a very long time. I exited Yes Bank on January 1, 2019. So really no clue," Kapoor tells DH
It's pertinent to note that the stress in the bank's loan book was caused majorly due to loans disbursed during his tenure. It was only after a scathing letter by the Reserve Bank that he had to step down as chairman of the bank. However, he continued as the promoter of the lender till three months back, when he sold all his shareholding in Yes Bank.
"I am not able to withdraw the money from YesBank. ATMs don't have cash. I have a salary account with them," YesBank account holder to DH.
NSE puts restrictions on Yes Bank shares
The National Stock Exchange (NSE) on Friday put restrictions on Yes Bank shares in various segments, including futures and options.
In a rare move, capital-starved Yes Bank was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
Read the full report here
All depositors of Yes Bank are safe. No need to panic, says SBI Chairman.
I want to assure all depositors that their funds will remain safe, and there is no need to panic, says Chief Economic Advisor Krishnamurthy Subramanian on Yes Bank.
Equity investors' loss stands at Rs 4.5 lakh crore.
FM Nirmala Sitharaman holds meeting with SBI Chairman on further action on Yes Bank.
Yes Bank's chief economist sold Rs 19 crore worth of shares by December 2019. More than three months back five insiders offloaded shared worth Rs 35 crore.
RBI will come out with a scheme "very shortly" and depositors' interest will be fully protected, Usha Thorat, former Deputy Governor, RBI tells CNBC-TV18. She further said that very swift action will be seen from RBI to revive Yes Bank - 30 days is the outer limit.
The plan is to have a credible revival plan for Yes Bank, saysRBI Board Member Sachin Chaturvedi.
Yes Bank shares tank 45% after RBI caps withdrawal limits to Rs 50,000
Beleaguered Yes Bank’s share prices dropped nearly 45% on Friday after the RBI capped withdrawal limits to Rs 50,000 last night.
Even though YesBank had been facing trouble for the last few months, it accounted for around 40 % of all the UPI transactions in the country at 514 million transactions in January 2020. The total UPI transactions stood at 1.31 billion, as per data collected from its parent’s site NPCI in January 2020. The other significant players with maximum UPI transactions were Google Pay and Paytm Payments Bank. YesBank has over 20 such partnerships with third-party applications, according to the National Payments Corporation of India (NPCI).
A flurry of resignations starts at Yes Bank after the RBI action. Two top executives have already resigned till now, sources confirm to DH.
'Supersession of Yes Bank Board raises very serious questions on financial sector'
The supersession of Yes Bank Board by RBI andlimit on withdrawals has once again raised very serious questions on the well being of our financial sector. The govt has completely failed to address any problems in our economy. Who is to be held accountable? asks Congress
Yes Bank shares tank 30% after RBI decree
Beleaguered Yes Bank’s share prices dropped nearly 30% on Friday after the RBI capped withdrawal limitstoRs 50,000 last night.
At 09:50 AMthe stock was trading at Rs25.80, down by Rs11.00on the NSE.
In a late evening notification on Thursday, RBI said that entire board of the YES Bank has been superseded and Prashant Kumar, ex-DMD and CFO of State Bank of India, has been appointed as the administrator under Section 36ACA (2) of the Act.
Yes Bank has not been able to raisefunds to buffer
Markets Live: Nifty crashes by 1,200 points, Sensex below 1,000 pts; Yes Bank slumps 25%
Yes Bank shares drop 15% after RBI caps withdrawal limits to Rs 50,000
Beleaguered Yes Bank’s share prices dropped nearly 15% on Friday after the RBI capped withdrawal limits to Rs 50,000 last night.
At 09:22 am the stock was trading at Rs. 31.30, down by Rs. 5.50, on the NSE. In a late evening notification on Thursday, RBI said that entire board of the YES Bank has been superseded and Prashant Kumar, ex-DMD and CFO of State Bank of India, has been appointed as the administrator under Section 36ACA (2) of the Act.
Read the full report here
What Yes Bank customers are complaining about:
* The website was down since last evening
* ATMs are not working
* Unable to do online banking
* RBI cap of withdrawal of 50,000will affectcash payments at the start of the month
* App is not functioning
Markets Live: Sensex crashes 1,400 points; Yes Bank slumps 14%
PhonePe had a tie-up with Yes Bank and their services are hit because of it.
PhonePehas said that they are working on rectifying the issue and plan to get services back as soon as possible.
We are temporarily unavailable. We are going through an unscheduled maintenance activity. We apologize for any inconvenience this may cause. We’ll be back soon, saysPhonePe.
Many users of fintech platforms such as Phone Pe have complained that they are unable to make transactions after the RBI placed a moratorium on YES bank late last night.
"Unfortunately my salary account is with Yes Bank and I'm am unable to do online transaction since last evening till about morning. The server is down. I am worried that I'm not going to get my money immediately," Communication Professional Annet Pillai, whose salary account is with YES Bank tells DH.
Sensex crashes by 900 points in pre-open. Yes Bank's shares are down by 10% in pre-open. Follow live updates of markets here
Customer of YES Bank tells DH that they are not able to access their net banking services.
"The suddencollapse of Yes Bank has been averted now by the RBI and government," says Macquarie. The brokerage retains its "Underperform" call on the stock, with a target price of Rs 25.
JP Morgan has revised Yes Banks target price from Rs 55 to Rs 1 per share.
It’s likely to be a day of panic as trust in the financial system gets questioned. Investors should stay on the sidelines and wait for the storm to settle. Investors should definitely avoid the temptation of buying into Yes Bank just because it falls today. In the past investors who have tried to do such bottom fishing in hopes of revival in stocks like RCOM, Jet Airways have lost their entire capital. It’s most likely that the Yes bank stock will go to 0 and get delisted over the next few months: Jimeet Modi, Founder and CEO of Samco Securities.
RBI takes over control of Yes Bank; caps withdrawal to Rs 50,000
The Reserve Bank of India on Thursday placed YES Bank under moratorium andrestricted withdrawals to Rs 50,000, as the central bank assumed control of the troubled private sector lender.
According to a gazette notification by the Ministry of Finance, no person can withdraw an amount in access of Rs 50,000 crore from the bank from March 5 to April 3 irrespective of the number of accounts he/she holds.
Read the report here
Yes Bank has been marred with a highly stressed corporate book. The bank has more than 11% exposure to realtors and shadow banks. Due to this and bulging contingent liabilities, the bank hasn't been able to garner funds to buffer it's depleting capital. In the past 5 months, the bank has witnessed huge withdrawals by the depositors as well.
This move comes amid the news of public sector lender State Bank of India (SBI) bailing out the bank.
YES Bank has not been able to raisefunds to buffer up depleting capital. To add to the woes, the bank has been witnessing a high level of withdrawals from the depositors in recent days, thereby causing a drop in its CASA ratio.Current Account-Saving Account (CASA) is the cheapest form of funds available to the banks.
The government has also directed the bank not to pay any creditor in excess of Rs 50,000.
"The Central Government hereby also directs that during the period of moratorium, the Yes Bank Limited, Mumbai, Maharashtra (the said banking company) shall not, without the permission in writing of the Reserve Bank of India make, in the aggregate, payment to a depositor of a sum exceeding Rs. 50,000 lying to his credit, in any savings, current or any other deposit account, by whatever name called," the notification by the government said.
The Department of Financial Services under the Ministry of Finance issued the direction in exercise of the powers conferred by sub-section (2) of section 45 of theBanking Regulation Act, 1949 (10 of 1949).