Tirupati temple trust withdrew deposits worth Rs.1300 cr from Yes Bank months ago

As per a release, Tirumala Tirupati Devasthanam (TTD), trust managing famous Tirumala Tirupati temple withdrew deposits worth Rs.1,300 crore from Yes Bank a few months ago. This assumes significance in wake of RBI’s decision on Thursday to impose a moratorium on Yes Bank. Reportedly, TTD deposited its funds with 4 banks including Yes Bank during tenure of TDP government.  

After assuming charge as new TTD chairman, YV Subba Reddy asked for a comprehensive report of financial position of 4 banks. reafter, he directed immediate withdrawal of deposits from Yes Bank citing its financial crisis. Reports indicate that Andhra Pradesh CM YS Jagan Mohan Reddy consented to decision once matter was brought to his tice.  

Read: BIG: SBI Boss Rajnish Kumar Confirms In-principle Approval For Yes Bank Bailout Investment

Yes Bank crisis

On Thursday, RBI imposed a moratorium on Yes Bank, superseding its Board of Directors. In meantime, former Chief Financial Officer of SBI Prashant Kumar has been appointed as administrator for Yes Bank. withdrawals for customers have been capped at Rs.50,000.

However, an exception can be made on grounds of a medical emergency, higher education costs, marri expenses, and unavoidable emergency. RBI t only assured customers but also promised to draw a scheme for bank’s reconstruction or amalgamation within 30-day moratorium period. RBI has cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of reasons for taking action.  

Read: "Don't Panic": Yes Bank's Former Independent Director Uttam Agarwal Applauds RBI's Step

'In-principle approval of SBI investment'

Earlier in day, SBI Chairman Rajnish Kumar confirmed that an in-principle approval of investing in Yes Bank had already been communicated to stock exchange. Asserting that re was need for customers to panic, he said interest of all stakeholders would be protected. Maintaining that RBI was taking appropriate steps for financial stability, he refused to reveal furr details of SBI’s plan vis-à-vis Yes Bank.  

SBI Chairman said, “Earlier, RBI Goverr has very clearly said that re is need for panic. interest of all stakeholders particularly all customers will be protected. So, what else do you want? We have given information of in-principle approval of SBI investment to stock exchange yesterday night. I will tell you when time arises. RBI said that y will come out with a restructuring plan. So, let that come, n we will talk.” 

Read: Payments Service PhonePe Hit By Out After Banking Partner Yes Bank's Moratorium

Read: NSE Restricts Yes Bank Shares, Anunces Futures & Options Contracts From May 29