Bank stocks plunge on NBFC concerns
about the health of NBFCs, which in turn could impact the banking industry, pulled sensex down 700 points before it recovered to close 362 points lower at 38,305. The biggest losers were Yes Bank (-22.8%), RBL Bank (-8.7%), Induslnd Bank (-6.3%) and SBI (-5.5%).
Yes Bank on Tuesday retweeted and quoted RBI’s statements after the bank faced a deluge of enquiries from its worried depositors.
Videos of the plight of PMC Bank victims went viral on Tuesday, creating panic — further exacerbated by failed online transactions at private banks such as Yes Bank, HDFC Bank, Kotak Mahindra Bank and IDFC First Bank. Bank users kept reporting that they were unable to pay rent, school fees and other dues on the first of the month.
Banks said the reason for the failures was a combination of festive season purchases, offers from e-commerce sites and payday for salaried professionals. A Kotak Mahindra Bank spokesperson said the bank would deploy additional servers to cope with the higher than anticipated volumes. An HDFC Bank spokesperson said its systems were back to normal by evening and had faced some issues in the morning, which had been resolved. HDFC Bank on Monday had launched its own festival offer to complement that of e-commerce firms.
While Yes Bank has not responded to requests for comment, online the bank reassured its customers that the netbanking problem was temporary and normal services would soon be restored.
Yes Bank customers like Satish Bhatnagar complained that during an NEFT transaction, money had been debited from their Yes Bank account but not credited to the receiver bank. Yes Bank responded, “We are facing some technical issues. Regular services are expected to resume shortly. We regret the inconvenience caused.”