The Reserve Bank of India had announced that the Yes Bank’s the moratorium will come to end on March 18 at 6:00 PM. As the crisis-hot private bank was superseded by RBI, it has now come out with a reconstruction scheme.
RBI reassured the bank’s customers that this reconstruction scheme will be public-private partnership with the largest lender State Bank of India and other big private lenders.
Shaktikanta Das, RBI governor believes that this partnership exhibits the confidence of major players in the banking industry in revival plan. Hence, he stressed upon that the depositors’ savings is safe and they should not “unduly worry or rush for withdrawing money.”
RBI assured that even though Yes Bank already has enough liquidity, however, in case of any other liquidity requirements, the regulator will bridge the gap. Thereby, confirming that RBI has complete hold on Yes Bank’s condition and plans to comfort the depositors.
The moratorium was announced RBI on March 5 when Yes Bank was positioned under a 30-day suspension. RBI capped the withdrawal limit of customers to Rs 50,000. It also superseded the board and appointed the SBI (former) CFO, Prashant Kumar as the chief executive of the Bank and an administrator.
Post the moratorium, the new board will join its position and the administrator will cease to exist, as on March 26.
As per the projected shareholding structure SBI will hold around 45 percent stake, while private banks such as HDFC, ICICI Bank, Axis Bank and Kotak Mahindra Bank are likely to hold a total of approximately 20 percent stake.