In Yes Bank crisis!

Will SBI (State Bank of Indiabe the Redeemer?

  • RBI (Reserve Bank of India) placed Yes Bank under moratorium by night.
  • Customers at Yes Bank can’t withdraw more than Rs 50,000 from their accounts. 
  • RBI has announced a draft revival plan that calls for action from SBI

The upcoming days will go restless for Yes Bank customers after the Reserve Bank of India capped withdrawals from most accounts at Rs 50,000 for the next month. The RBI took the important decision when it placed the cash-starved Yes Bank under moratorium. The RBI said it was concerned about the financial problem at Yes Bank, which has been facing a bad loan book and has been impotent to raise money in the form of investment.

There was some ray of hope for Yes Bank’s customers who spent most of the day lining up outside ATMs and branches in an effort to withdraw whatever money they could. The RBI announced a draft plan to arouse the crisis-hit bank. In accordance with the draft plan, the state-run State Bank of India will invest money in Yes Bank and own 49 percent of its shares.

Will this plan save Yes Bank from falling apart? We will find out in the coming days. For now, in case you’ve missed the trailer of the last twenty-four hours, here’s a full sum up of all that’s happened at Yes Bank.


The Reserve Bank of India had placed Yes Bank under moratorium this meant that Yes Bank customers could withdraw only up to Rs 50,000 from their accounts for the next one month which is really a big problem and hurdle for the citizens who have their accounts in YES BANK. The Rs 50,000 per Yes Bank account capital will be abandoned in certain situations.


Yes Bank faced a crisis of NPA(non-performing assets), i.e. loans that have either gone bad or where repayments have been postponed for too long, like most other banks in India,. Partially due to this, Yes Bank’s capital eroded. For the last few months, the bank has been angling for cash in the form of fresh investment. The hunt, however, resulted in nothing.


For now, it’s a wait-and-see game. The RBI has revealed a draft revival plan aimed at pumping fresh money into Yes Bank. However, there are some circumstances that, Yes Bank customers cannot withdraw more than Rs 50,000 from their accounts, excluding some specific situations.

Due to the crisis customers faced some complication withdrawing money from ATMs or accessing internet banking due to apparent network issues at Yes Bank. On Friday evening, there was no accuracy on the status of these services and when they would be fully revived.


Finance Minister Nirmala Sitharaman while addressing a press conference in Delhi said, that the State Bank of India had shown interest in investing in Yes Bank. Sitharaman’s comments came just after the Reserve Bank of India revealed a draft revival plan.

According to the draft plan, SBI would invest money in Yes Bank and own 49 percent of the restructured bank. Yes Bank’s market value would also be amended to Rs 5,000 crore with 2,400 crore equity shares with a value of Rs 2 each.

The capital mixture would happen with SBI paying at least Rs 10 per share and not the face value of Rs 2. According to a back-of-the-envelope calculation, at Rs 10 per share, SBI would have to allocate Rs 11,760 crore to own 49 percent of the reorganized Yes Bank.