‘YES to get RBI’S liquidity boost if needed’

Unlike previous instances, RBI chose not to merge a stressed bank with a strong bank. Instead, it prepared a rescue plan under which an eightmember consortium, led by State Bank of India (SBI), invested ₹10,000 crore into the bank.

Das affirmed that the YES Bank reconstruction scheme is a “very credible and sustainable” restructuring plan.

Das hoped that depositors would retain their loyalty to the bank.

“Large number of depositors remained loyal to the bank. I do expect them to continue their loyalty because a large part of the banking sector has invested in the bank.

Our interactions with State

Bank of India (SBI) and others gives us confidence that it is a sound and solid plan.”

Defending the plan, Das added that the bank will remain a private sector lender.

“RBI’S action has been very swift and was taken very fast.

It is perhaps a record of sorts,” he said.

“Never in the banking history of India, depositors of a scheduled commercial bank have lost money,” he added.

Das also noted that Reserve Bank of India (RBI) has written to state governments assuring them of the safety of private sector banks and there is no need to withdraw deposits from these banks.

As part of YES Bank’s draft reconstruction scheme, State

Bank of India (SBI) picked up nearly 49% stake in the troubled private sector lender.

Under this plan, large private sector institutions including Housing Development Finance Corp. Ltd, ICICI Bank Ltd, Kotak Mahindra Bank Ltd, Axis Bank Ltd, IDFC First Bank, Bandhan Bank and Federal Bank infused equity into the bank, along with SBI.