Posted at 11:56 AM , on March 11, 2020
With deposits of over Rs.200,000 crore and a massive loan book, Yes Bank’s relations run deep into the economy. How should investors and depositors handle their relationships with Yes Bank now? This pertains to deposits, bonds, shares, loans taken and even mandates.
What happens to deposits?
The good news is that all deposits in Yes Bank are safe as per the assurance of the Finance Minister. However, it is better to be safe than sorry and you need to start winding down your links with the bank gradually. Ensure that your employer immediately shifts your salary account from Yes Bank and do the same if you are a businessman and employ people. All checks issued on your Yes Bank account will not be valid so you need to inform the payee and make alternative arrangements.
Posted at 12:27 PM , on March 9, 2020
On 06th March, Yes Bank was officially placed under administration by RBI. In a way, this is the end of Yes Bank as we know it. What does this mean for the Indian investors in general and banking in India in particular?
Yes Bank moratorium
The decision of RBI to push Yes Bank into moratorium was never in doubt. It had exposures to most of the troubled companies including Reliance ADAG, DHFL, Jet Airways, IL&FS, McLeod Russell and Cox and Kings. Most of the loans were virtually irrecoverable. The only thing Yes Bank could do was to raise $2 billion urgently. However, the assurances from Ravneet Gill turned out to be deceptive. RBI really had no choice other than to put the bank in administration in order to protect the interests of depositors at large.