Moratorium On Yes Bank May Be Lifted This Week, Says Administrator Prashant Kumar

The moratorium on Yes Bank Ltd. could be lifted as early as Saturday, according to Reserve Bank of India-appointed administrator Prashant Kumar.

“All of us are working towards lifting of moratorium much before the last date that is April 3, and it could be as early as this Saturday,” Kumar told BloombergQuint in an interview.

Kumar assured Yes Bank’s customers that their deposits are “absolutely safe”, and that they can withdraw up to Rs 50,000 this month, as per the RBI-imposed cap. He doesn’t foresee any issue on the liquidity front, with added “lines of comfort” from both RBI and the State Bank of India, if required.

Yes Bank debit cards are back online, withdrawals can be done from the lender’s own and other automated teller machines. Customers will be able to avail the entire spectrum of facilities in a matter of three to four days, Kumar said, adding that credit cards will not be operational as there is a restriction on new credit.

Key highlights from the interview:

• Any capital requirement at Yes Bank will be taken care of.
• Capital will either come from SBI—capped at 49 percent stake. The rest will be raised from the market.
• Customers have been able to transact via Yes Bank ATMs from the evening of March 6.
• ATMs of other banks were made available to customers from the evening of March 7.
• Working towards providing other transaction channels to Yes Bank customers.
• Customers can avail the entire spectrum of facilities in a matter of three-four days.
• Terms of credit lines to remain the same for most customers.
• Will take a call on large borrowers on a case-to-case basis.
• Will be able to get bank and fintech partners once Yes Bank returns to normalcy.
• No impact on equity holders as per RBI’s draft resolution plan for Yes Bank.
• Yes Bank put under moratorium due to credit quality, liquidity issues.

Watch the full interview with Yes Bank administrator Prashant Kumar: