Since 5th March, the Yes Bank has been knee-deep in troubled waters, with other banks joining hands to pull out the private sector lender from the crisis. After a week’s period and with a reconstruction scheme in place, Yes Bank is all set to start a new journey.
Almost 10 days ago, the Reserve Bank of India (RBI) had put the private lender Yes Bank under a moratorium, restricting its customers from withdrawing an amount not more than ₹50,000 per customer, which will stay in force up to 3rd of April, 2020. This resulted in fear and pandemonium among the public.
A reconstruction scheme 2020 was in progress between the Reserve Bank of India (RBI) and the State Bank of India (SBI). With other banks also taking part in the scheme to help out their fellow bank, the scheme received the nod of approval from finance minister Nirmala Sitharaman, as the moratorium was also announced to be lifted on the 18th of March.
On Monday, the Yes Bank announced that it will resume all banking services from 18th March evening, as the moratorium gets lifted. The Yes Bank wrote on its twitter handle, “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”.
The bank will start afresh with its services along with its new chairman, a new board of directors and even new Chief Executive Officer (CEO) Prashant Kumar, former CFO of the State Bank of India (SBI). The State Bank of India (SBI) has invested an amount of ₹6,050 crores with other investors being invited within 49% equity shares of Yes Bank.
The SBI-led consortium includes other banks such as the Axis Bank, Bandhan Bank, Federal Bank, Housing Development Finance Corporation (HDFC), ICICI Bank, IDFC First, and Kotak Mahindra Bank.
The private sector landed in trouble after suffering a loss of ₹18,564 crores in the December quarter alone. During this period, Yes Bank also lost 18.87% of its gross non-performing assets, which was only 2.10% in the previous year. However, the reconstruction scheme being introduced, Yes Bank shares jumped over 58% on Monday.