Vadodara Municipal Corporation withdrew Rs 265 Cr from Yes Bank in the nick of time

Vadodara Smart City Development Company, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), withdrew Rs 265 crore from Yes Bank a day before the Reserve Bank imposed a moratorium, an official said in Vadodara on Friday.

On Thursday, the RBI restricted withdrawals from Yes Bank to Rs 50,000 per depositor due to the private lender's precarious financial situation.

Sudhir Patel, chief executive officer of the SPV and deputy municipal commissioner of the VMC, said the amount had been received from the Centre as part of a grant under the Smart City Mission and deposited with a local Yes Bank branch.

It was withdrawn two days ago considering the problems faced by Yes Bank and transferred to a new account at Bank of Baroda, he informed.