WATCH | RBI Governor Shaktikanta Das On The Yes Bank Crisis
Reserve Bank of India Governor Shaktikanta Das said the resolution of Yes Bank Ltd. will be swift.
The Mumbai-based lender was put under moratorium and its board was superseded by the RBI citing a steady decline in its financial health. The bank is not allowed to pay any depositor more than Rs 50,000 without written permission from the central bank during the period of moratorium.
The RBI and the government had given appropriate time to Yes Bank management to resolve the crisis, Das said at an event in Mumbai. But the capital-starved lender failed to find a resolution after exploring various avenues over the last several months. “We intervened when we realised Yes Bank wasn't able to find a resolution,” Das said.
There is always a question that the RBI acted prematurely. There could be another view that why did you take so long? An investor-led option is always preferable.Shaktikanta Das, Governor, Reserve Bank of India
Das assured a proposed plan for Yes Bank will be released quickly.
Bloomberg had on Thursday morning reported that the government has stepped in to organise a rescue for the Ravneet Gill-led bank. State Bank of India has been selected to lead a consortium that will inject fresh capital into the private lender, the report said, citing people familiar with the matter.
Also Read: Yes Bank’s Bonfire of Insanity Was Left to Burn
Das said the stability of the financial sector is the uppermost responsibility and commitment of the RBI. “Let me assure you Indian banking sector remains sound and safe” Das said adding, “…the central bank stands ready to intervene in whatever may be required”.
RECOMMENDED FOR YOU
POPULAR