Yes Bank Withdrawal Limit Could End "Within A Week": SBI Chairman Rajnish Kumar

SBI chairman Rajnish Kumar's comments come days after the RBI unveiled a bailout plan for Yes Bank

State Bank of India (SBI) chairman Rajnish Kumar said on Monday that the moratorium on Yes Bank could be lifted as early as "within a week". In an interaction with NDTV, the SBI chairman said, "I want to assure Yes Bank customers that once we (SBI) step in, they shouldn't worry about money... The financial system is sound." His comments come days after the Reserve Bank of India (RBI) unveiled a bailout plan for Yes Bank, under which SBI will invest up to Rs 10,000 crore in the beleaguered private sector lender. The RBI has taken control of Yes Bank, after the debt-laden lender failed to raise the capital it needs to stay above mandated regulatory requirements.

Here are highlights of what SBI chairman Rajnish Kumar said:

Haven't received any direction from the government to invest in Yes Bank
State Bank of India, RBI, government cannot act solely
All three are part of collective effort
SBI closely working with Reserve Bank of India
Capitalisation of Yes Bank to the tune of Rs 20,000 crore-22,000 crore
Many co-investors willing to join
Survival of Yes Bank crucial for financial system
Recapitalisation to ensure that Yes Bank meets regulatory capital ratio
Yes Bank moratorium could be lifted as early as within a week
Want to assure Yes Bank customers that once SBI steps in, they shouldn't worry about money
Want to assure depositors that financial system is sound
It will be business as usual (once SBI steps in)
Banks have to give extensive disclosures in their balance sheets
Yes Bank should not be made to suffer
Action should be taken against promoters
SBI to be co-investor in Yes Bank