Bank stocks plunge on NBFC con­cerns

The Times of India (New Delhi edition) - - Front Page -

Fears

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.”

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