Yes Bank: RBI withdraws moratorium on Yes Bank, banking services restored

The Reserve Bank of India today removed the moratorium imposed on Yes Bank, thereby enabling customers to access full banking services from March 19. The customers can start doing normal transactions as they were doing before. Although the bank expects that there may not be a rush to withdraw cash, still it is prepared for any possible surge in withdrawals.

On March 5, the RBI had imposed a moratorium on the private lender, restricting withdrawals to Rs 50,000 per depositor till April 3, in view of its poor financial health due to bad loans.

Yes Bank is ready with nearly Rs 30,000 crore cash to meet any possible surge in withdrawals from depositors. This includes Rs 22,000 in certificate of deposits to be subscribed by state-run banks and Rs 9,000 crore in inter-bank loans backed by Reserve Bank of India, the publication reported citing unnamed sources.

In a press conference yesterday, YES Bank CEO-designate Prashant Kumar said there are absolutely no worries on the liquidity front.

On March 14, the bank reported a record loss of Rs 18,564 crore for the quarter ending December 31, 2020, as against a profit of Rs 1,000 crore in the year-ago quarter.

As part of the reconstruction plan, the bank has received investments from eight banks, including the State Bank of India, which will be largest shareholder.