Yes Bank problem bank-specific, not sectoral: SBI chief Rajnish Kumar

By: |
March 6, 2020 2:59 PM

The Reserve Bank on Thursday placed Yes Bank under a moratorium and imposed limits on withdrawals.

yes bank, rbiThe RBI has capped withdrawals from Yes Bank at Rs 50,000 for the next one month

A day after the RBI superseded the board of India’s fourth-largest private sector lender Yes Bank, State Bank of India (SBI) Chairman Rajnish Kumar on Friday said the problem at hand is lender-specific and not sectoral.

On Thursday, the SBI board gave its “in-principle” approval to exploring investment opportunities in Yes Bank.

“The RBI has said they will come out with a restructuring plan (for Yes Bank),” Kumar told reporters after meeting Finance Minister Nirmala Sitharaman.

The resolution will come “very shortly,” he said without elaborating.

The Reserve Bank on Thursday placed Yes Bank under a moratorium and imposed limits on withdrawals.

“This is not a sectoral problem. It is a bank-specific problem,” he said. “The RBI will take all steps to ensure financial stability.”

On SBI picking up a stake in Yes Bank, he said the lender already has an in-principle approval for doing so.

“If SBI has to pick up a stake in Yes Bank, we have an in-principle approval for that,” he said.

The RBI has capped withdrawals from Yes Bank at Rs 50,000 for the next one month and imposed strict limits on operations after the cash-starved lender faced “regular outflow of liquidity” after an effort to raise new capital failed.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India’s top brands: HDFC Bank leads list seventh time in a row
2India Ratings downgrades banking sector outlook to negative from stable
3DHFL: Union Bank issues demand notice to Wadhawans