RBI supersedes board of troubled YES Bank, sets Rs 50,000 withdrawal limit

Lender placed under moratorium; withdrawal capped at Rs 50,000; govt, central bank flag governance issues

Yes Bank Crisis: The reserve financial institution of india (rbi) on thursday superseded the board of bothered non-public zone lender sure financial institution and imposed a 30-day moratorium on it “within the absence of a credible revival plan” amid a “serious deterioration” in its financial fitness.

Former country financial institution of india chief economic officer prashant kumar has been appointed administrator of yes bank, and every depositor could be capable of withdraw only up to rs 50,000 in overall until the moratorium is in vicinity, the rbi said in two reputableStatements issued on thursday evening. but, in amazing situations together with a clinical emergency or marriage, depositors can withdraw up to rs five lakh or the quantity lying in account, whichever is less.

That is the first time that a financial institution of this size may be positioned beneath a moratorium by means of the rbi. at some point of the moratorium, which got here into impact from 6 pm on thursday, sure bank will now not be allowed to grant or renew any loans, and “incur any liability”, except for payment closer to personnel’Salaries, rent, taxes and prison fees, amongst others. The imperative bank stated the decision became taken within the public interest and inside the interests of the financial institution’s depositors, and that it turned into left with “no opportunity”…

YES Bank: World’s worst-performing bank stock posts globe’s biggest surge

Its shares have rallied about 50 per cent — the biggest gain among global peers valued at more than $1 billion — after embattled founder Rana Kapoor was forced to sell his holdings in October

India’s Yes Bank Ltd., the world’s worst-performing lender in 2019, has posted the globe’s biggest gain over the past month.

Its shares have rallied about 50 per cent — the biggest gain among global peers valued at more than $1 billion — after embattled founder Rana Kapoor was forced to sell his holdings in October and a new management team promised fresh capital and lower bad loans. The surge helped pare the annual loss in the Mumbai-based lender’s shares to 63 per cent. Yes Bank rose about 3 per cent as of 9:48 a.m. in Mumbai on Monday, while the main equity index was little changed.

The recovery will be a relief for new Chief Executive Officer Ravneet Gill, who’s been courting investors to revive the bank. India’s billionaire investor Rakesh Jhunjhunwala this month bought shares of Yes Bank, after the lender announced a binding offer from an unidentified global investor to inject $1.2 billion. Gill is rushing to raise funds. Latest results released this month show Yes Bank swung to a loss in the September quarter and its bad-loan ratio rose.“Capital is of utmost importance to the bank and we want the money to be in the bank by December,” Gill told reporters after the results. “Once we get the capital it will run us for 24 months.”

Yes Bank files complaint against ‘fake news’, attempt to scare depositors

Yes Bank seeks multi-disciplinary team of experts for detecting the origin of the fake news.

Yes Bank on Sunday said it has file a police complaint against “fake news and rumours” on social media about its finances, saying there was an attempt to scare depositors. The bank complained to the Mumbai Police’s cyber cell after its promoters cut their stake and the company’s shares took a beating at stock exchanges. “Yes Bank has lodged a complaint with Mumbai Police and Cyber Cell against the dissemination of fake news and spread of rumours about the bank’s financial health on WhatsApp and other social media platforms,” the bank said in a regulatory filing.

It requested authorities to form a multi-disciplinary team of experts for detecting the origin of the fake news and assess the short-sell positions, held either directly or indirectly, by such accused persons.

“Over the past few days some miscreants have been spreading false information and malicious rumours about Yes Bank on WhatsApp and other social media platforms to create panic and fear in the mind of its depositors. The messages attempt to portray the bank in poor light and are intended to tarnish the image of the bank in the eyes of its depositors, stakeholders and the general public,” the bank said.

“The bank appeals to its trusted patrons to be cautious of false information circulating against it and assures that its financial position continues to be absolutely safe and sound,” it said...