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Bulk Deposits At Yes Bank Withdrawn Even Before Moratorium


As assessed earlier, deposits at beleaguered lender Yes Bank have dropped sharply from Rs. 2 lakh crore in September 2019 amid continuing trouble at the private sector lender. With rising NPAs and inability to garner funds, there was seen withdrawal of Rs. 18000 crore in deposits at the bank only until September last year. Also, as per reports after moratorium was called for the bank on Thursday, there were heavy withdrawals from retail investors as the money was withdrawn using interbank transfer route.Later, the withdrawals from the bank at ATMs across the country were made possible.

Bulk Deposits At Yes Bank Withdrawn Even Before Moratorium

"The central bank's takeover of Yes Bank appears intended to restore depositor confidence. However, we believe that there is a risk that the RBI's move could backfire if it prompts depositors to shift their money to institutions that are perceived to be safer. This could pose liquidity challenges, particularly for smaller private banks with weaker franchises or more limited access to support from parent entities," Fitch Ratings said in a report.
Now reports come up of ending the moratorium for the bank well within this week and reportedly SBI is likely to give its say in the reconstruction plan for lender with many co-investors seen interested in the lender.

Read more about: yes bank rbi deposits
Story first published: Monday, March 9, 2020, 12:40 [IST]
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