Yes Bank crisis | Withdrawal cap may be lifted as early as March 15, confirms Prashant Kumar

Yes Bank Crisis
Yes Bank Crisis
Yes Bank Crisis
Yes Bank Crisis

Withdrawal limit of Rs 50,000 on Yes Bank depositors can be withdrawn till the morning of March 15, and there is no question of the merger with State Bank of India (SBI), which is the leader in the rescue of the troubled lender, by the Reserve Bank Appointed Administrator India said.

Prashant Kumar told CNBC-TV18, “The goal is to make all banking services available as soon as possible.” Kumar, a former deputy managing director of SBI, said he was confident of things going steady at Yes Bank by April 3, adding that the RBI ban could come to an end by the end of this week.

April 3 is when the RBI ban is about to end.

Kumar rejected the possibility of Yes Bank’s merger with SBI, as is widely speculated. He said that Yes Bank would run as an independent bank. He said, “The possibility of merger uses only when there is not much faith in raising capital.” ”

On March 7, Yes Bank told its customers that they could withdraw money from ATMs using debit cards.

Calling customers the ‘priority,’ Kumar said that ATMs of other banks are available to customers of Yes Bank from March 7 evening. He said that the RBI would soon come up with its final reconstruction plan. Currently, the draft plan does not have many issues that need to be changed.

Emphasizing the need for more capital, Kumar said that State Bank of India (SBI) was helping YES Bank to reach investors for money, while clarity on the need for capital was in a few days.

“When there is SBI, new investors will not have difficulties,” he said. “Global investors will now invest in Yes Bank. The presence of SBI will give investors considerable confidence.

Kumar confirmed that the bank was already in talks with investors, while more details would be provided on March 14, when the bank’s quarterly results would be released.

Also, he dismissed any question of the merger with SBI. He said that Yes Bank would run as an independent bank. The contingency of a merger applies only when there is not much confidence to raise capital.

Kumar also reiterated SBI President Rajnish Kumar’s statement that there was no question of merger. Further, SBI is not going to ask the government for additional capital, he said, adding that there is no connection between the security of deposits and market capitalization.

On the controversial issue of Additional Tier I, Kumar said: “Technically, AT1 can be written if capital falls. AT-I always allows 100 bps on Tier II bonds due to risk. AT1 investors, who were enjoying a premium, would understand that it would be a single-case. ”

He said that the new board would decide the fate of former CEO Ravneet Gill.

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