Govt's ability to govern financial institutions exposed: Chidambaram on Yes Bank crisis
4 years, 10 months ago

Govt's ability to govern financial institutions exposed: Chidambaram on Yes Bank crisis

India TV News  

Senior Congress leader P Chidambaram hit out at the government on Friday, saying its "ability to govern and regulate financial institutions stands exposed". For the next month, Yes Bank will be led by RBI-appointed administrator Prashant Kumar, a former chief financial officer of the State Bank of India. The former finance minister also wondered if the BJP-led government would confirm that the loan book of YES Bank had grown under its watch from Rs 55,000 crore in FY 2014 to Rs 2,41,000 core in FY 2019. "When overall bank credit during the above period grew by about 10 percent, how did YES BANK's loan book grow by about 35 percent?"

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History of this topic

Congress: Any move to reduce govt stake in 12 public sector banks will be resisted
5 months, 3 weeks ago

Congress: Any move to reduce govt stake in 12 public sector banks will be resisted

The Hindu  

The Congress on July 19 said any move to bring down the Union government's stake in 12 public sector banks to less than 51 per cent would continue to be resisted forcefully both in Parliament and outside. Over the past seven years, there have been mergers in the public sector banking industry, Mr. Ramesh pointed out "United Bank of India …

‘Dangerous’: Chidambaram on RBI Proposal on Corporates in Banking
4 years, 1 month ago

‘Dangerous’: Chidambaram on RBI Proposal on Corporates in Banking

The Quint  

He also added that “it is no secret which politically connected business houses will get the first licences and increase their monopolistic power” if the proposal is administered. Speaking for the importance of neutrality of banks, which is maintained even in developed economies, Chidambaram said “It is shocking that such an idea should have been presented to the people as …

Rajan, Acharya may be off mark: PSU banks need strategy and focus to survive, not privatisation as remedy
4 years, 3 months ago

Rajan, Acharya may be off mark: PSU banks need strategy and focus to survive, not privatisation as remedy

Firstpost  

The PSU banks’ problem is often linked to India’s burgeoning fiscal deficit that needs control because pumping taxpayer money into state-run banks is fraught with risks. It is interesting that two of India’s biggest brand-name economists, former Reserve Bank governor Raghuram Rajan and former deputy governor Viral Acharya, have spoken for the “re-privatisation” of public sector banks even as the …

No funds available: Depositors at India's PMC Bank survive on loans, charity
4 years, 4 months ago

No funds available: Depositors at India's PMC Bank survive on loans, charity

India Today  

In February, 82-year-old Kishan Lal appealed to India's finance minister for help, saying in a Twitter message he was ready to donate his kidney and eyes if someone could help arrange funds to treat his daughter, who had a brain tumour. Asked about the delay in resolving PMC's problems, Jai Bhagwan Bhoria, an administrator appointed by the RBI to revive …

Will add liquidity if needed, RBI assures Yes Bank depositors
4 years, 9 months ago

Will add liquidity if needed, RBI assures Yes Bank depositors

The Hindu  

Describing the reconstruction scheme for Yes Bank as credible and sustainable, Reserve Bank of India Governor Shaktikanta Das on Monday sought to assure the private bank’s depositors that their hard-earned money is safe. Watch | Yes Bank crisis explained “It is a very credible and sustainable restructuring plan,” Mr. Das said while addressing the media here on the Yes Bank …

Yes Bank crisis: Moratorium to be lifted on March 18, rescue plan notified
4 years, 9 months ago

Yes Bank crisis: Moratorium to be lifted on March 18, rescue plan notified

India TV News  

The government on March 13 approved the reconstruction scheme drawn by the Reserve Bank of India's for Yes Bank. Yes Bank was placed under a moratorium earlier this month by the RBI, which took control of the board and also imposed a Rs 50,000-limit on withdrawals from the bank till April 3, sending thousands of depositors scurrying to retrieve their …

RBI asks State govts not to move deposits out of private banks, says money is safe
4 years, 9 months ago

RBI asks State govts not to move deposits out of private banks, says money is safe

The Hindu  

The Reserve Bank of India has asked State governments not to transfer their deposits out of private sector banks saying apprehensions about the safety of deposits in private lenders are highly misplaced. In a letter written to Chief Secretaries of all States, the central bank said moving deposits out of private sector banks could have implications for banking and financial …

Yes Bank crisis explained
4 years, 10 months ago

Yes Bank crisis explained

The Hindu  

The Reserve Bank of India has placed Yes Bank under moratorium. Many borrowers started defaultingThe bank’s gross non-performing asset percentage, that is the percentage of loans overdue for more than 90 days, zoomed to 7.39% as of September 2019, the highest among comparable banks. Loan spree and high NPA meant poor profitability, gauged by Yes Bank’s sinking Return on Assets …

The cost of a yes to a bank rescue act
4 years, 10 months ago

The cost of a yes to a bank rescue act

The Hindu  

The revival package announced by the Reserve Bank of India to rescue insolvent Yes Bank smacks of desperation. Even before undertaking due diligence, SBI Chairman Rajnish Kumar has announced that his bank is willing to outlay as much as ₹10,000 crore to recapitalise ailing Yes Bank and restore it to health. Data | The Yes Bank crisis explained in six …

Yes Bank crisis: Best practices needed as benchmark to govern banks; govt should consult with veteran bankers for solutions
4 years, 10 months ago

Yes Bank crisis: Best practices needed as benchmark to govern banks; govt should consult with veteran bankers for solutions

Firstpost  

Recent days have seen RBI governor Shaktikanta Das pulling up public sector banks for poor credit growth even as Kapoor’s Yes Bank shenanigans were simmering in the backdrop. The current crisis in Yes Bank makes for great headlines, with a high-profile founder lending huge amounts to tainted and/or serial borrowers, allegations of political corruption and a general state of injustice …

CBI books Yes Bank founder Rana Kapoor's family, conducts searches; ED quizzes Bank CEO
4 years, 10 months ago

CBI books Yes Bank founder Rana Kapoor's family, conducts searches; ED quizzes Bank CEO

India Today  

The CBI has booked Yes Bank founder Rana Kapoor's wife and three daughters over allegations he received kickbacks through scam-hit DHFL's Rs 600 crore loan to a family-owned company and searched seven locations including their homes in Mumbai, the agency said on Monday. DoIt Urban Ventures controlled by the Kapoor family, RAB Enterprises Private Limited in which Bindu Rana Kapoor …

Yes Bank crisis | Indian banks well capitalised, no reason to worry: Chief Economic Adviser
4 years, 10 months ago

Yes Bank crisis | Indian banks well capitalised, no reason to worry: Chief Economic Adviser

The Hindu  

In the wake of the moratorium on private sector lender Yes Bank, the RBI clarified on Sunday that deposits of customers were safe. “The RBI closely monitors all the banks and hereby assures all depositors that there is no such concern of safety of their deposits in any bank,” it said. Allaying concerns over the banking sector health, Chief Economic …

Yes Bank founder Rana Kapoor, accused of money laundering, arrested
4 years, 10 months ago

Yes Bank founder Rana Kapoor, accused of money laundering, arrested

India TV News  

The Enforcement Directorate arrested Yes Bank founder Rana Kapoor under money laundering charges in the wee hours of Sunday. The ED action came after the Reserve Bank of India on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect. As per …

Government, RBI didn’t bother to read the balance sheet of Yes Bank, says Chidambaram
4 years, 10 months ago

Government, RBI didn’t bother to read the balance sheet of Yes Bank, says Chidambaram

The Hindu  

The government and the RBI didn’t bother to read the balance sheet of the Yes Bank, former Finance Minister P. Chidambaram said pointing out to the unusual growth in the loan book at the rate of 35% a year between March 2014 to March 2019. Read: Committed to safeguarding depositors, says Nirmala Sitharaman It was not banking but buccaneering, Mr. …

ED continues questioning of Yes Bank founder Rana Kapoor in connection with money laundering case
4 years, 10 months ago

ED continues questioning of Yes Bank founder Rana Kapoor in connection with money laundering case

Firstpost  

The Enforcement Directorate on Saturday continued questioning Yes Bank founder Rana Kapoor in connection with a money laundering probe against him and others, officials said Mumbai: The Enforcement Directorate on Saturday continued questioning Yes Bank founder Rana Kapoor in connection with a money laundering probe against him and others, officials said. The central agency is also probing Kapoor’s role in …

Rana Kapoor, Yes Bank founder brought to ED's Mumbai office
4 years, 10 months ago

Rana Kapoor, Yes Bank founder brought to ED's Mumbai office

India TV News  

A day after the Enforcement Directorate registered a money laundering case against Yes Bank founder Rana Kapoor and raided his premises, he was taken to the agency's office in Mumbai on Saturday for further questioning. A senior ED official connected with the probe told IANS: "Kapoor will be questioned about Yes Bank loans to Dewan Housing Finance Limited." He said …

SBI rules out merger with crisis-hit Yes Bank
4 years, 10 months ago

SBI rules out merger with crisis-hit Yes Bank

India TV News  

SBI chairman Rajnish Kumar on Saturday said that there is no question of a merger with the Yes Bank, as it is evaluating the restructuring draft scheme of the crisis-hit bank. "There is no question of a merger of the bank with the state-run bank," SBI said amid Yes Bank crisis, according to the Economic Times. Meanwhile, SBI chairman said, …

Yes Bank crisis: Not impressed with mere words, say account holders as SBI promises help
4 years, 10 months ago

Yes Bank crisis: Not impressed with mere words, say account holders as SBI promises help

India Today  

Sandeep Sule, a resident of Mumbai's Lalbagh area, had been running his medical shop "quite smoothly" until the overnight news of the Reserve Bank of India imposing a one-month moratorium on Yes Bank shocked him. On Thursday, the RBI imposed a one month moratorium on capital-starved Yes Bank and capped the monthly withdrawal limit for depositors to Rs 50,000 per …

Banking on bailouts: The Hindu Editorial on Yes Bank crisis
4 years, 10 months ago

Banking on bailouts: The Hindu Editorial on Yes Bank crisis

The Hindu  

Just one day after it placed the financially troubled Yes Bank under a moratorium, the Reserve Bank of India announced a draft ‘Scheme of Reconstruction’ that entails the State Bank of India investing capital to acquire a 49% stake in the restructured private lender. The alacrity with which the bailout has been proposed is commendable, given that Yes Bank’s stock …

’Self-appointed competent doctors’: FM hits back at Chidambaram for jibe over Yes Bank crisis
4 years, 10 months ago

’Self-appointed competent doctors’: FM hits back at Chidambaram for jibe over Yes Bank crisis

Live Mint  

New Delhi: Finance Minister Nirmala Sitharaman on Friday hit back at senior Congress leader P Chidambaram for his jibe over crisis-hit Yes Bank's loan book swelling five times under BJP rule, saying "self-appointed competent doctors" created more problems in handling crisis at three banks during the UPA regime. "So-called self-appointed competent doctors" were in charge when United Western Bank was …

Crisis at Yes Bank highlights governance risk in India's banking sector; RBI's decision may backfire: Fitch
4 years, 10 months ago

Crisis at Yes Bank highlights governance risk in India's banking sector; RBI's decision may backfire: Fitch

India TV News  

The RBI superseding the board of Yes Bank casts light on governance risks in India's banking sector, Fitch Ratings said on Friday. "The Reserve Bank of India takeover of Yes Bank casts light on governance risks in India's banking sector," Fitch Ratings, which has a negative outlook on India's banking sector, said in a statement. "This could overshadow the central …

Congress questions Yes Bank loan surge
4 years, 10 months ago

Congress questions Yes Bank loan surge

The Hindu  

The ₹50,000 cap on withdrawal by depositors of Yes Bank by Reserve Bank of India triggered sharp reactions from Congress leaders on Friday. Senior leader and former Union Finance Minister P. Chidambaram said the government’s ‘ability to govern and regulate financial institutions stands exposed’. In a series of tweets, Mr. Chidambaram asked the government to explain how the loan book …

SBI to pick up 49 per cent stake in Yes Bank
4 years, 10 months ago

SBI to pick up 49 per cent stake in Yes Bank

India TV News  

State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan, with Finance Minister Nirmala Sitharaman assuring that depositors' money is safe. A day after imposing moratorium on Yes Bank and restricting withdrawals, the RBI on Friday evening issued a draft reconstruction scheme for the private sector lender and said …

Yes Bank Crisis: You can withdraw more than Rs 50 thousand, but these are the conditions
4 years, 10 months ago

Yes Bank Crisis: You can withdraw more than Rs 50 thousand, but these are the conditions

India TV News  

Yes Bank Crisis: Yes Bank on Friday evening sought to calm everyone down by issuing a statement and said that the moratorium imposed by Reserve Bank of India was "temporary" and all efforts are being made to revive the bank. I wish to reassure you that your deposits are safe with the Bank," said Prashant Kumar, who has been appointed …

After Yes Bank crisis, Maharashtra govt shuns private banks
4 years, 10 months ago

After Yes Bank crisis, Maharashtra govt shuns private banks

India TV News  

Against the backdrop of the Yes Bank crisis, the Maharashtra government has decided to only bank with public sector banks, officials said here on Friday. Deputy Chief Minister Ajit Pawar added that the government does not have any accounts with any private sector banks and only banks with PSBs. However, the Municipal Corporation of Greater Mumbai, certain other civic bodies …

Security tightened at Yes Bank branches, ATMs in Mumbai as depositors rush to withdraw money
4 years, 10 months ago

Security tightened at Yes Bank branches, ATMs in Mumbai as depositors rush to withdraw money

India TV News  

As Yes Bank depositors rush to ATMs on Friday to withdraw cash a day after it was put under a moratorium, security at its branches, ATMs, headquarters across Mumbai was tightened to avert any untoward incident. The RBI has capped a withdrawal limit of Rs 50,000 as Yes Bank's faces capital crunch. During the day, account-holders rushed to branches of …

Yes Bank | Committed to safeguarding depositors, says Nirmala Sitharaman
4 years, 10 months ago

Yes Bank | Committed to safeguarding depositors, says Nirmala Sitharaman

The Hindu  

The Centre has directed the Reserve Bank of India to look into the causes of the crisis at Yes Bank and to pin responsibility on the individuals responsible and those who failed to address the problems at the bank, Union Finance Minister Nirmala Sitharaman said on Friday. “While our government is completely committed to ensure that the depositors’ interest is …

Want to assure every depositor's money is safe: Sitharaman on Yes Bank crisis
4 years, 10 months ago

Want to assure every depositor's money is safe: Sitharaman on Yes Bank crisis

India TV News  

Finance Minister Nirmala Sitharaman on Yes Bank crisis Friday said that the RBI Governor has assured her there will be no loss to any Yes Bank depositor, a day after the central bank imposed a moratorium on the banking institution. Further speaking on the crisis, Sitharaman said, "Both RBI and the government is looking at Yes Bank issue in detail, …

Yes Bank Stock Crashes Over 70% After RBI Takes Charge; Rahul Gandhi Attacks PM Modi Over Crisis
4 years, 10 months ago

Yes Bank Stock Crashes Over 70% After RBI Takes Charge; Rahul Gandhi Attacks PM Modi Over Crisis

ABP News  

Modi and his ideas have destroyed India’s economy. #NoBank — Rahul Gandhi March 6, 2020 While Moody's expects Indian authorities will take steps to prevent the weakness in the bank's viability from significantly impacting its depositors and senior creditors, the lack of a coordinated and timely action highlights continued uncertainty around bank resolutions in India. : Shares of Yes Bank …

YES Bank Crisis: After PMC Bank, It's YES Bank Now, Which Is Next? Asks Chidambaram
4 years, 10 months ago

YES Bank Crisis: After PMC Bank, It's YES Bank Now, Which Is Next? Asks Chidambaram

ABP News  

New Delhi: Former Finance Minister and Congress leader P Chidambaram flayed the government for its inability to govern and regulate financial institutions. His statement came after Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. Let's see what unfolds now,”he told reporters at the …

Who is Prashant Kumar, Yes Bank's newly appointed administrator
4 years, 10 months ago

Who is Prashant Kumar, Yes Bank's newly appointed administrator

India TV News  

Former SBI's chief financial officer, Prashant Kumar has been appointed as the new administrator of Yes Bank after a moratorium has been imposed by the RBI on the bank and withdrawal limit to its customers has been capped at Rs 50,000. Former SBI employee Prashant Kumar, who joined SBI in 1983 and worked under a number of portfolios, has now …

Yes Bank resolution will be done very swiftly; 30 days is outer limit: RBI Governor
4 years, 10 months ago

Yes Bank resolution will be done very swiftly; 30 days is outer limit: RBI Governor

India TV News  

RBI Governor Shaktikanta Das on Friday said that the Yes Bank resolution will be done very swiftly and will soon come out with a scheme to revive the capital-starved Bank within the outer limit of 30 days. He also said that the decision of imposing a moratorium on Yes Bank was taken at a "larger level" and not at the …

After PMC, Yes Bank is there a third bank in line? Chidambaram questions FM Nirmala Sitharaman
4 years, 10 months ago

After PMC, Yes Bank is there a third bank in line? Chidambaram questions FM Nirmala Sitharaman

India Today  

Former Finance Minister P Chidambaram on Friday took a sharp dig at Finance Minister Nirmala Sitharaman over the YES Bank crisis and accused her ministry of being unable to govern and regulate financial institutions. "When overall bank credit during the above period grew by about 10 per cent, how did YES BANK's loan book grow by about 35 per cent?" …

Yes Bank crisis: Rahul Gandhi attacks Modi, says PM and his ideas have destroyed economy
4 years, 10 months ago

Yes Bank crisis: Rahul Gandhi attacks Modi, says PM and his ideas have destroyed economy

India Today  

In wake of the Yes Bank crisis after the Reserve Bank of India placed restrictions following which its shares fell sharply, Congress leader Rahul Gandhi slammed the Narendra Modi government for destroying the economy. #NoBank Rahul Gandhi March 6, 2020 Rahul gandhi's tweet hitting out at the Centre came a day after the RBI placed capital-starved Yes Bank under a …

Your money is safe: Amid Yes Bank crisis, Nirmala Sitharaman assures depositors
4 years, 10 months ago

Your money is safe: Amid Yes Bank crisis, Nirmala Sitharaman assures depositors

India Today  

Finance Minister Nirmala Sitharaman has assured the depositors of Yes Bank they have nothing to worry about and that their money is safe. No need to worry," Union Finance Minister Nirmala Sitharaman said in her first reaction to the Yes Bank crisis. Both RBI and the government are looking at the Yes Bank issue in detailwe have taken a course …

Yes Bank crisis: Modi govt's inability to regulate banks stands exposed, says P Chidambaram
4 years, 10 months ago

Yes Bank crisis: Modi govt's inability to regulate banks stands exposed, says P Chidambaram

India Today  

Senior Congress leader and former Finance Minister P Chidambaram today said the Narendra Modi-led NDA government's ability to govern and regulate financial institutions stands exposed in wake of the Yes Bank crisis which comes just months after the fraud at PMC Bank. His tweet came a day after the Reserve Bank of India placed capital-starved Yes Bank under a moratorium …

Yes Bank crisis: I have no clue, says founder Rana Kapoor
4 years, 10 months ago

Yes Bank crisis: I have no clue, says founder Rana Kapoor

India Today  

Yes Bank founder and former MD Rana Kapoor has said that he has no clue about developments which forced Reserve Bank of India to impose a moratorium on the private lender. Once a driving force behind Yes Bank, Rana Kapoor sold his last remaining stake in the private sector lender in November 2019. Rana Kapoor was instrumental in taking Yes …

Yes Bank crisis: Amit Malviya hits back at Rahul Gandhi, says Chidambaram responsible for mess
4 years, 10 months ago

Yes Bank crisis: Amit Malviya hits back at Rahul Gandhi, says Chidambaram responsible for mess

India Today  

Moments after former Congress president Rahul Gandhi attacked the Narendra Modi government and held it responsible for "destroying Indian economy" by citing the latest Yes Bank crisis, BJP leader and the party's national IT in-charge Amit Maviya said it is the Congress that is responsible for this current crisis. #NoBank Rahul Gandhi March 6, 2020 Hitting back at Rahul Gandhi, …

No Yes Bank, says Rahul Gandhi, accuses govt of destroying economy
4 years, 10 months ago

No Yes Bank, says Rahul Gandhi, accuses govt of destroying economy

India Today  

The Congress on Friday slammed the central government over the moratorium placed on Yes Bank, saying the difference between a "doctor" and a "quack" can be seen in Manmohan Singh's financial management in the UPA era and the economic "collapse" under Prime Minister Narendra Modi's watch. "No Yes Bank," Congress leader Rahul Gandhi said, taking a dig at the BJP-led …

Yes Bank put under moratorium till April 3
4 years, 10 months ago

Yes Bank put under moratorium till April 3

The Hindu  

The government has put private sector lender Yes Bank under moratorium till April 3 and capped deposit withdrawal at ₹50,000 after severe deterioration of the bank’s financial position. While assuring depositors of the bank that there is no need to panic, RBI said it will explore and draw up a scheme in the next few days for the bank’s reconstruction …

SBI chairman Rajnish Kumar says Yes Bank ‘will not be allowed to fail’
4 years, 11 months ago

SBI chairman Rajnish Kumar says Yes Bank ‘will not be allowed to fail’

Live Mint  

The head of India’s biggest lender said he’s certain “some solutions will emerge” to steady Yes Bank Ltd., which has been on a prolonged quest to raise new capital. “Yes Bank is a significant player in the market with an almost $40 billion balance sheet,” State Bank of India Chairman Rajnish Kumar told Bloomberg Television in Davos. However, last month …

Former RBI governor C Rangarajan says banks recapitalisation should be done through cash
5 years, 1 month ago

Former RBI governor C Rangarajan says banks recapitalisation should be done through cash

Firstpost  

Former RBI governor C Rangarajan on Friday suggested that recapitalisation of banks should be done through by infusing cash rather than issuing Bonds, as he cautioned that Boards of public sector undertakings, including banks, should maintain “arms length” from the Government Hyderabad: Former RBI governor C Rangarajan on Friday suggested that recapitalisation of banks should be done through by infusing …

Piyush Goyal asks state-run banks to step up lending to MSMEs, agri, housing sectors
5 years, 11 months ago

Piyush Goyal asks state-run banks to step up lending to MSMEs, agri, housing sectors

Firstpost  

Assuring full support to public sector lenders, Piyush Goyal said bankers have also got confidence from the amendment in the Prevention of Corruption Act that bonafide actions are protected by the law. New Delhi: Finance Minister Piyush Goyal on Monday exhorted state-run banks to step up lending to micro, small and medium enterprises, agriculture and housing sectors and also assured …

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