The revival scheme for Yes bank is the next step of RBI. State Bank Of India (SBI) has decided to invest nearly RS 2,450 crore for the cause.
On Friday, March 6 the Reserve Bank Of India (RBI) presented a draft scheme for reconstruction of Yes Bank. Following this State Bank Of India (SBI) has shown willingness to participate and invest money and own 49 per cent of its shareholding.
Earlier, RBI had placed Yes Bank under a moratorium late on Thurday. It took control of the bank for 30 days. RBI also apponited Prashant Kumar, former chief financial officer of SBI as the administartor for the reconstruction sheme.
" We have to give assurance to potential investors and depositors. That is why we are stepping in" said Kumar on Saturday, March 7 to the Press conference. He further made it clear that SBI's contribution will not exveed Rs 10,000 crore. Though there might be some inconvenience but, the money of the depositors is safe, he said.
However, many criticize this roadmap of reconstruction. The argument goes that SBI's investment of 2,450 crore might temporarily avert the Yes Bank crisis. But the ban of withdrawing money to just 50,000 rupees for a month will only worsen the trust of public in private banks.
On Friday, March 6 the Reserve Bank Of India (RBI) presented a draft scheme for reconstruction of Yes Bank. Following this State Bank Of India (SBI) has shown willingness to participate and invest money and own 49 per cent of its shareholding.
Earlier, RBI had placed Yes Bank under a moratorium late on Thurday. It took control of the bank for 30 days. RBI also apponited Prashant Kumar, former chief financial officer of SBI as the administartor for the reconstruction sheme.
" We have to give assurance to potential investors and depositors. That is why we are stepping in" said Kumar on Saturday, March 7 to the Press conference. He further made it clear that SBI's contribution will not exveed Rs 10,000 crore. Though there might be some inconvenience but, the money of the depositors is safe, he said.
However, many criticize this roadmap of reconstruction. The argument goes that SBI's investment of 2,450 crore might temporarily avert the Yes Bank crisis. But the ban of withdrawing money to just 50,000 rupees for a month will only worsen the trust of public in private banks.
No comments:
Post a Comment