Published 17:44 IST, March 17th 2020

'More cash inflow than withdrawals,' says Yes Bank to depositors; SBI to raise stake soon

Assuring depositors of the Yes Bank, the current administrator Prashant Kumar on Tuesday, said that the bank has seen more inflows rather than withdrawals

Follow: Google News Icon
  • share
null | Image: self
Advertisement

Assuring depositors of stressed lender Yes Bank, current administrator Prashant Kumar on Tuesday, said that bank has seen more inflows rar than withdrawals, before lifting of moratorium on Wednesday, at a press conference in Mumbai. Stating that bank was prepared for any contingency, he said that all ATMs have been refilled with cash. Reiterating RBI goverr's advice that re were deposits from private sector banks, he said that complete rmalcy will be restored.

RBI guv states 'Yes Bank Reconstruction scheme sustainable'; hails pvt-public partnership

Advertisement

Yes Bank PC: 'More inflow of cash than withdrawals'

"Only 1/3rd of our customers have withdrawn Rs 50,000 during moratorium. Customers' feedback is that y don't feel need to withdraw money from bank. We have had higher inflows than outflows in last few days. We have sufficient funding lines to meet any contingency. Complete rmalcy will be restored, all branches and employees are ready," he said.

He added, "We are happy to anunce that moratorium will be lifted from 6 pm tomorrow. We have taken adequate precautions, all our ATMs are full of cash, branches have an adequate supply. RBI goverr assured that re is need to withdraw deposits from pvt sector banks".

ED summons Anil Ambani in probe against Yes Bank co-founder Rana Kapoor; Ambani seeks time

Advertisement

Yes Bank will recover Rs 8500 crores in NPA next year

Talking about future of company, he said that brand was strong and if revamping manment will be decided by board. He also revealed that bank is expecting to recover Rs 8500 crores of NPA declared by it. Talking about first focus of Yes Bank, he added that bank plans to maintain being 60% retail and 40% corporate bank. 

" brand is very strong. re is need to change employees or mode of working. Have you seen such a large reconstruction in such a less time?" he said. When asked about revamping of bank working, he added, "Our first focus would be on building deposit franchise. We will want to shift to 60% on retail and 40% on corporate. decision will be taken to revamp manment by board. We are expecting Rs 8500 crore recovery in NPA in next financial year."

Yes Bank investment meant to ensure system's stability, t RoI: SBI chief's big admission

Advertisement

Adding to Kumar's statement, SBI Chairman Rajnish Kumar said that SBI will increase its stake in Yes Bank to 49 % from current 42 pc in second funding round. When asked as to why SBI was asked to intervene, when Yes Bank was trying to raise funds, he said, "Yes Bank is raising fund, re was eugh money available. But conscious decision was taken to keep it within Indian domestic banks".

BIG: Yes Bank to resume full banking services after 6 pm on March 18, at branches & online

Advertisement

Yes Bank crisis

Yes Bank which has been facing a crisis as it accumulated many bad loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways and Cafe Coffee day, was put on a moratorium by RBI for a period of 30 days, capping its withdrawals at Rs 50,000 - but is scheduled to be lifted on March 18. RBI has also anunced ‘Yes Bank Ltd. Reconstruction Scheme, 2020’ altering authorised capital to Rs 5000 crores and 2400 equity shares standing at Rs 10 each. Moreover, SBI which leads consortium of banks investing in 'reconstructed bank' will t reduce its holding below 26% before completion of three years. Yes Bank reported on Saturday a staggering Rs 18,654-crore loss for December quarter as its gross n-performing assets shot-up to Rs 40,709 crore.

17:44 IST, March 17th 2020