Signage is displayed outside a Yes Bank Ltd. branch in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)
6 years ago
Mar 17, 2020
Yes Bank News Live Updates: Heads of SBI, HDFC, ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank and Axis Bank are expected to be at the Yes Bank press conference. Follow live updates and developments here.
SBI Chairman Rajnish Kumar said that there was a lot of due diligence done on the books of Yes Bank. He said that based on their due diligence, they found nothing wrong in the Mumbai-based lender’s books.
Whatever has been declared by the bank is a true representation of the bank's financial position, Rajnish Kumar said.
There is no need for a forensic audit, Yes Bank administrator Prashant Kumar said.
Yes Bank administrator Prashant Kumar said that the first focus of Yes Bank now would be building a deposit franchise. "I am not saying we'll become a retail bank. But there will be a shift of focus from corporate to retail."
Kumar said that currently, corporate accounts make 60 percent of the bank's book and retail makes 40 percent. Yes Bank would like it to be the other way around, he said.
Yes Bank administrator Prashant Kumar said that there are enough funding lines available if the bank needs more capital. SBI Chairman Rajnish Kumar also reiterated the same. “I am present here to give the assurance that this bank will get all the liquidity it needs,” he said.
Prashant Kumar said that the bank will now have to build a granular deposit franchise and move away from bulk deposits. "It will need time, but our teams on the ground are ready and working on it."
Yes Bank administrator Prashant Kumar said that they would not like to comment on the bank’s decisions to write off its AT-1 bonds because the matter is sub judice. “Whatever has been done is in accordance with the agreement between the bondholders and Yes Bank,” Kumar said.
The current Rs 10,000 crore worth funds would lead to meeting all capital ratios. So we can always do another round of fund raise a little later, Rajnish Kumar said.
Yes Bank administrator Prashant Kumar said that the bank did their internal analysis and are confident that when the moratorium ends tomorrow, the bank won't see a flurry of outflows.
“What we saw was that only 1/3rd of the customers withdrew funds to the full extent of Rs 50,000. So that itself is a huge comfort. The feedback we are getting from the ground, they say that they don't have any apprehensions or they don't feel the need to shift to any other bank. That is a huge comfort,” Kumar said. “Last four days the bank saw higher inflows than outflows.”
Kumar said complete normalcy will resume from Wednesday 6 P.M. “Our branches and employees are ready and we are ensuring that the relationship managers are meeting with customers and ensuring that their funds are safe,” Kumar said.
Prashant Kumar added that the assurance from RBI Governor that deposits will be safe is a positive.
Kumar said it is historical that such an incident was addressed within 13 days. If the situation had not been handled the way it has been done, this could have turned into a contagion impact, he said.
Yes Bank Ltd. will hold a press conference today, it’s first since the government put it under a moratorium and the Reserve Bank of India formulated a rescue plan for the lender led by State Bank of India and other private banks.
Yes Bank administrator Prashant Kumar, and heads of other lenders including SBI’s Rajnish Kumar, IDFC First’s V. Vaidyanathan and Federal Bank’s Ashutosh Khajuria will be present.
Das also said that the moratorium on Yes Bank would be lifted by Wednesday 6 P.M. The lender said it will resume full banking services from the day after.
