Odisha govt distances itself from Jagannath Temple's deposit in crisis-hit Yes Bank

Odisha government on Thursday clarified that y had  role in  Shree Jagannath Temple Administration (SJTA)'s deposit in crisis-hit Yes Bank. According to Odisha government, decision was taken by temple's managing committee, and y do t interfere in it. 

Speaking in Assembly session, State Finance Minister Niranjan Pujari said, "Yes Bank was selected through a transparent process for deposit. Proposals were invited from scheduled commercial banks by way of quotations by temple administration for deposit of Rs 545 crore."

He furr added that "Yes Bank had assured an interest rate of 8.61 per cent per annum."

Yes Bank crisis

Yes Bank started 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, among ors. Moreover, when RBI refused to extend term of founder Rana Kapoor as chief executive in 2018, its manment was severely hit with his successor Ravneet Gill managing to raise only one round of funds through a share sale to institutional investors. In a bid to revive bank, Gill has been in talks over past 18 months with equity investors, but could t come up with a concrete investment plan.  

Read: Crisis-hit Yes Bank provides relief to customers, enables inward IMPS/NEFT services

Read: Congress sees scam in RBI's Yes Bank bailout; mum on Vadra art sale to 'tainted promoter'

RBI takes over Yes Bank for 30 days

On March 4, RBI  appointed former SBI CFO Prashant Kumar as administrator for Yes Bank and imposed a moratorium on troubled lender, capping its withdrawals at Rs 50,000, for a period of 30 days. RBI stated that decision was taken to a serious deterioration in financial position of bank and has been done to restore depositors' confidence in bank. Yes Bank has also cancelled all fund withdrawal requests made by clients to ir YES bank accounts and its stocks tumbled by 10%.

Read: SBI to buy 725 crore shares of Yes Bank at Rs.10 each; shareholding to remain up to 49%

Read: 'Common man facing crisis over Government's Yes Bank mismanment,' says Adhir Ranjan