Yes Bank to start full fledged banking operations from 6 pm today
Yes Bank CEO-designate Prashant Kumar has assured customers that complete operational normalcy will be restored from 6 PM today. Stating that there are absolutely no worries on the liquidity front, Mr. Kumar said all the bank branches and ATMs have adequate supply of cash. He also clarified that there would not be any need to depend on external sources for liquidity.
Assuring depositors that there is no need to worry about the safety of their deposits, Mr. Kumar said customers will enjoy all the banking services as they did before the moratorium.
Mr. Kumar also ruled out a forensic audit of the lender’s books but also remained non-committal on continuing to pay the present 5-6 per cent interest on deposits. The retired SBI banker, who will formally take over as the Chief Executive and Managing Director on 26th of this month, said he expects recoveries worth 8,500-10,000 crore rupees in the March quarter itself as provision of almost 72 percent has already been made.
It may be recalled that Reserve Bank had imposed a moratorium on Yes Bank earlier this month, capping withdrawals at 50,000 rupees per depositor after it found that the new management is unable to raise the urgent core capital which had fallen much below the mandated level.
The moratorium will be lifted at 6 PM today, as per the reconstruction scheme notified and that it will be back to normal operations. Besides SBI being a major shareholder now, ICICI Bank, HDFC, Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First have also invested in the private lender as per the reconstruction scheme announced by Reserve Bank.