Reserve Bank of India governor Shaktikanta Das on Friday said that Yes Bank resolution will be done very swiftly and that 30 days is an outer limit, according to news agency PTI.
On late Thursday evening, the central bank put Yes Bank under moratorium and capped withdrawals at Rs 50,000 per account till further orders. The central bank had taken over the Mumbai-based bank’s board for 30 days amid a serious deterioration in India’s fifth-largest private sector lender’s financial position.
“The 30 days which we have given is the outer limit. You will see very swift action from the RBI to put in place a scheme to revive Yes Bank,” Das told news agency PTI
The governor said that the decision was at a “larger level” and not at individual entity level. The move is aimed at ensuring safety of financial system, he added.
Das has assured a swift action from the central bank’s end so as to put in place a scheme to revive Yes Bank.
“A market-based resolution of the problem, a bank laid, investor laid resolution of the problem is always preferable. You have to give time to the bank, management to take the steps they need to take and they tried. RBI intervened when we found it was not working out.
Yes Bank shares tumbled to at least 25% as markets took a hit and banking stocks came under pressure after RBI actions over the crisis.
