FM Sitharaman over Yes Bank crisis assures depositors that there money is safe

After Reserve Bank of India (RBI) suspended the Yes Bank's board for a period of 30 days as the financial position of the Bank is worse and capped the withdrawal limit of Rs 50,000 on its account holders till April 3, the RBI Governor Shaktikanta Das said the central bank has a scheme to revive the beleagured lender.

Yes-Bank-Crisis Finance-Minister-Nirmala-Sitharaman FM-Assures-Depositors

Shaktikanta Das was quoted while reporting to an eminent news agency, "We will take swift action..and we have a scheme in place to revive the bank."

Top 10 developments you should know about Yes Bank crisis:

1)  As per the Reserve Bank of India (RBI), the decision on the Yes Bank has been taken on a larger level and not at an individual entity level, and was aimed at ensuring the safety of financial institutions. "RBI stands ready to intervene in whatever way required to respond to epidemic challenges," said the Governor, RBI.

Also Read: As Yes Bank crisis upsurge, Congress leaders slams Modi govt and his ideas for destruction of economy

2) According to official sources near to Finance Minister said people need not to worry about their deposits and savings in the Yes Bank. In a week's time the RBI will be able to control the things and those who have accounts in the bank should not fear.

3) After the Reserve Bank of India placed Yes Bank under the moratorium and capped withdrawal limit, the stock price of the Mumbai-based private lender crashed 85 per cent to hit an intraday low of Rs 5.65 on the National Stock Exchange. On Thursday, the stock closed at Rs 36.80.

4) While placing the bank under the moratorium, the central bank said that the bank has lost its financial capability, undergone a steady decline largely as the bank was not able to raise its capital.

5) The moratorium was credit negative, said Moody's, as it affected timely repayment of depositors and creditors and added that the lack of coordinated action highlighted continued uncertainty over bank resolutions in India.

6)  "Effectively, Yes Bank should have no equity value left," said Sandip Sabharwal, a Mumbai-based fund manager. 

7) "Ideally, trading should be suspended till formal restructuring is announced." SBI late on Thursday said, its board had given its in-principle nod to explore an investment in Yes Bank.

8) "We believe forced bailout investors will likely want the bank to be acquired at near zero value to account for risks associated with the stress book and likely loss of deposits," JPMorgan analyst Saurabh Kumar said in a note, as it cut its price target on the lender to Rs 1 from Rs 55 a share.

9)  Domestic stock markets suffered sharp losses in early trade on Friday amid a selloff across the world as the spread of the coronavirus pandemic stoked fears of recession. RBI's action of seizing control of the beleaguered Yes Bank and possible ramifications on the financial system also dented sentiments on Dalal Street.

10) The S&P BSE Sensex index nosedived as much as 1459.52 points to hit 37,011.09 on the downside in the first few minutes of trade, and the broader NSE Nifty benchmark dropped to a low of 10,827.40, down 441.60 points from the previous close.  


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