![]() ![]() In the case of YES Bank, it cannot be invoked at the moment as the authorities are exploring restructuring and merger. The cover was raised to Rs 5 lakh last month, in the Union Budget 2020. Moreover, there is the deposit insurance cover – provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC). However, the fact that a rescue plan is in the offing barely 24 hours of RBI superseding Yes Bank’s board, is a source of comfort. Mutual funds are in a tizzy, as some of them hold Yes Bank’s AT1 bonds. Experts point out that this could be unfair as such bonds are ranked higher than equity, so they should say. For instance, the plan says that the Additional Tier I Capital (AT1) bonds issued by Yes Bank would be written down permanently. It remains to be seen if the draft scheme undergoes any changes before being finalised. Yes Bank Q2 Results: Net profit slides 32% to Rs 153 crore “The deposits with and liabilities of the reconstructed bank…will continue in the same manner and with the same terms and conditions, completely unaffected by the scheme,” the plan says. Depositors and employees, barring key managerial persons, too, can heave a sigh of relief. ![]() Comments can be sent to the Chief General Manager, Department of Regulation, Reserve Bank of India, Central office, 13th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001, or emailed to has expressed its willingness to make investment in YES Bank and participate in its reconstruction scheme,” RBI stated in the reconstruction plan. They can send in their suggestions till March 9, 2020, after which the RBI will take a final call. The RBI has already drawn up a draft scheme of reconstruction and has invited comments from SBI, YES Bank, the shareholders, depositors, creditors and members of the public. She also confirmed SBI’s interest in buying a stake in the beleaguered YES Bank. Finance Minister Nirmala Sitharaman on Friday assured depositors that their money with YES Bank was safe. ![]()
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