Yes Bank moratorium lifted, banking operations resume

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NEW DELHI: In a big relief for depositors, Yes Bank on Wednesday announced that it has resumed complete banking services, which was stopped after the Reserve Bank of India (RBI) placed it under moratorium earlier this month.
Taking to Twitter, the crisis-hit bank stated: “Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation.”

On March 5, the Reserve Bank imposed a moratorium on the troubled private sector lender, including capping withdrawals at Rs 50,000 per depositor after it found that the new management was unable to raise the urgent core capital which had fallen much below the mandated level.
In a media briefing on Tuesday, former SBI deputy managing director Prashant Kumar who was appointed the administrator of Yes Bank, had said that there are absolutely no worries on the liquidity front and all branches and ATMs of Yes Bank have adequate supply of cash.
On the reconstruction scheme, the retired SBI banker noted that due to support from the government, the RBI and other financial institutions, the crisis at the bank was taken care within 13 days.
State Bank of India (SBI) chairman Rajnish Kumar said the country’s largest lender that owns close to 43 per cent in Yes Bank now will not sell a single share before the mandated three-year lock-in period, and that he’s in fact keen to approach the board for hiking the holding to 49 per cent.
Under the reconstruction scheme, Yes Bank has received over Rs 10,000 crore from eight financial institutions, including Rs 6,050 crore from SBI and the rest from seven other private sector banks including ICICI Bank, HDFC and Kotak Bank.
While ICICI Bank and HDFC have invested Rs 1,000 crore each into the bank, Axis Bank has put in Rs 600 crore. Kotak Mahindra Bank (Rs 500 crore), Bandhan Bank, Federal Bank (Rs 300 crore each) and IDFC First (Rs 250 crore) have also joined the SBI-led consortium to invest in Yes Bank.
(With agency inputs)

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