Yes Bank Crisis
Will SBI (State Bank of India) be the Redeemer?
- RBI (Reserve Bank of India) placed Yes Bank under a 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 and that calls for action from SBI.
The upcoming days will restless for Yes Bank customers after RBI capped withdrawals from account Rs 50,000 for next month.
The RBI took the important decision, because when it placed the cash famished Yes Bank under a moratorium.
The RBI said it was concerned about the financial problem at Yes Bank.
And which has been facing a bad loan book and has been impotent to raise money in the form of investment.
Yes Bank Crisis
There was some ray of hope for Yes Bank’s customers because who spent most of the day lining up outside ATMs and branches to withdraw whatever money they could.
The RBI announced a draft plan to arouse the crisis-hit bank.
To 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?
Yes Bank Crisis
We will find out in the coming days. For now, in case you’ve missed the trailer of the last twenty-four hours, and here’s a full sum up of all that’s happened at Yes Bank.
YES BANK WAS PUT UNDER A MORATORIUM.
Yes Bank Crisis
This meant that Yes Bank customers could withdraw only up to Rs 50,000 from their accounts.
And for the next one month which is a big problem and hurdle for the citizens who have their accounts in YES BANK.
The Rs 50,000 per Yes Bank account and capital will be abandoned in certain situations.
WHY WAS YES BANK PLACED UNDER MORATORIUM?
Yes Bank Crisis
Yes, Bank faced a crisis of NPA, i.e. loans that have either gone bad.
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.
WHAT HAPPENS TO YES BANKS CUSTOMERS?
For now, it’s a wait-and-see game.
Yes Bank Crisis
The RBI has revealed a draft revival plan aimed at pumping fresh money into Yes Bank.
However, there are some circumstances that which Yes Bank customers cannot withdraw more than Rs 50,000 from their accounts, excluding some specific situations.
Yes Bank Crisis
Due to the crisis customers faced some complications 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.
RBI’S REVIVAL PLAN
The Yes Bank Crisis became a major financial shock in India, exposing the risks of aggressive lending and weak governance. Yes Bank, once seen as a fast-growing private lender, expanded rapidly by financing large corporate groups. However, many of these borrowers turned into defaulters, leading to a huge pile of non-performing assets (NPAs). Poor risk management and questionable decision-making by the top leadership worsened the situation.
By early 2020, the bank’s capital position weakened severely, creating a liquidity crunch. The Reserve Bank of India (RBI) intervened to protect depositors and the stability of the financial system. A moratorium was imposed, restricting withdrawals to ₹50,000 per account, which triggered panic among customers. Soon, the government and leading banks, especially State Bank of India (SBI), launched a restructuring plan to revive Yes Bank.
The Yes Bank Crisis underlined the importance of strong corporate governance, transparency, and strict regulatory checks in the banking sector. It also highlighted how reckless lending practices and lack of accountability can threaten even large institutions. Today, Yes Bank continues to rebuild trust, while the crisis remains a lesson for India’s financial system.
Finance Minister Nirmala Sitharaman, while addressing GD in Delhi aforesaid, the SBI had shown interest in finance in Yes Bank.
Sitharaman’s comments came simply when the Reserve bank of India disclosed a draft revival setup.
Yes Bank Crisis
According to the draft setup, SBI would invest cash in Yes Bank and own 49 % of the restructured bank.
Yes, Bank’s market price would even be amended to Rs 5,000 large integer with 2,400 crore equity shares with a worth of Rs 2 each.
The capital mixture would happen with SBI paying a minimum of Rs 10 per share and not the face worth of Rs 2.
In step with a back-of-the-envelope calculation, at Rs 10 per share.
Yes Bank Crisis
SBI would have to be compelled to allot Rs 11,760 large integer to have 49 % of the organized Yes Bank.
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