One of India's largest private banks, Yes Bank got a new administrator in Prashant Kumar on Friday after the Reserve Bank of India imposed a moratorium on the private lender due to mounting bad loans.
One of India’s largest private banks, Yes Bank got a new administrator in Prashant Kumar on Friday after the Reserve Bank of India imposed a moratorium on the private lender due to mounting bad loans. Prashant Kumar has taken charge with immediate effect, Yes Bank said in a BSE filing on Friday. Kumar, who is former Deputy Managing Director and CFO of State Bank of India, has been appointed by RBI after the central bank superseded Yes Bank board. In his previous roles, Prashant Kumar has worked in various fields such as credit, human resources and training systems at SBI. Kumar had joined State Bank of India as a Probationary Officer after he completed his law degree from the University of Delhi.
Prashant Kumar joined the State Bank of India in 1983 and has 30 years of experience in the banking field. He also served as the Chief General Manager of SBI in the bank’s Kolkata and Mumbai circle.
Merely months after the RBI unearthed massive bad loans mess in the Punjab and Maharashtra Co-operative Bank, Yes Bank has also come under the Reserve Bank of India’s action to resolve the bank’s mounting bad loan crisis. The private sector lender was late Thursday evening placed under a one-month moratorium, with the RBI capping withdrawals at Rs 50,000 per account for a period of 30 days. The bank is also restricted from granting or renewing any loan or advance, or to make any investment, incur any liability or agree to disburse any payment. The moratorium placed on the Yes Bank will end on 3rd April 2020.
Meanwhile, the RBI governor Shaktikanta Das tried to assuage the fears of depositors and said that “the resolution will be done very swiftly, it will be done very fast. 30 days which we have given is the outer limit. You will see a very swift action from the RBI,” he told reporters on Friday. He also said that India’s banking system continues to be “safe and sound”. The shares of Yes Bank were trading low at Rs 15.80 apiece at BSE at 1 PM.