Yes Bank customer withdrawal capped to Rs 50000 for next one month
If you are a customer of Yes Bank then there is bad news for you. Actually, the Reserve Bank of India has set a withdrawal limit of 50 thousand rupees for the customers of the bank. According to the information, this order of RBI is for the next one month. In other words, the customers of Yes Bank will be able to withdraw only 50 thousand rupees from their account for the next 1 month. Apart from this, former SBI CFO Prashant Kumar has been appointed as the Administrator of Yes Bank.
RBI has taken this action in view of the financial condition of the bank. Yes Bank has been struggling to raise funds for some time. Earlier on Thursday, it was reported that the government has asked the country’s largest state-owned SBI to buy a stake in Yes Bank.
Bank’s stock rose
The bank’s stock rose more than 25 percent due to the news of SBI’s stake in Yes Bank. At the end of trading, Yes Bank’s stock closed at a price of Rs 36.85 (25.77%). A day earlier, it had closed at Rs 29.30.
Yes Bank is facing financial crisis
The economic condition of Yes Bank, which started about 15 years ago, is not good. As the debt on the bank increases, the stock is also falling apart. Yes Bank’s plight has increased so much that the investors of the bank have lost more than 90 percent within just 15 months.
In August 2018, Yes Bank’s stock which was selling at a price of more than 400 rupees, has fallen below Rs 30 today. At the same time, in September 2018, the market cap of Yes Bank was about 80 thousand crores, which has now come to the level of 9 thousand crores. Accordingly, the market cap of the bank has decreased by more than 70 thousand crores.
Why this condition of this bank?
In the last few years, Yes Bank has suffered one after the other. In this, the biggest shock was given by the Reserve Bank of India. In the year 2018, RBI felt that Yes Bank was making some discrepancies in its subordinated debt (NPA) and balance sheet. After this, RBI forcibly removed Yes Bank Chairman Rana Kapoor from the post. For the first time in the history of the bank, a chairman was removed from this post.
Shock on QIP front too
Apart from this, Yes Bank also received a setback on the qualified institutional placement (QIP) front. Actually, the bank’s goal of raising funds through QIP could not be met. The bank had raised Rs 1,930 crore through QIP. QIP is a way of raising capital for companies.
In these conditions, rating agencies around the world are looking at the bank suspiciously and doing negative marking. Under this, ratings agency Moody’s Investors Service downgraded Yes Bank to junk category in August last year. The crisis in the management of Yes Bank has also increased the bank’s woes. However, from time to time, the possibility of any deadlock in management has been dismissed.
Yes Bank will be out of Nifty 50
On March 27 this month, YES Bank will exit National Stock Exchange (NSE) major index ‘Nifty 50’. The top 50 performer companies are in this list. This list often changes. This includes the same companies whose performance and market cap improves.
