Yes Bank : Resolution To Be Done ‘Very Quickly’ within 30 days : RBI Governor Shaktikanta Das

Mumbai : Defending the decision to put the crisis-prone Yes Bank on hold at present, Reserve Bank Governor Shaktikanta Das said on Friday that issues related to the bank would be resolved ‘very soon’. Speaking to reporters here, Das said, “Yes Bank will be resolved very fast. We have set a 30-day time limit for this. From the Reserve Bank, you will see action in this direction very soon.’

Shaktikanta Das said that the decision to ban Yes Bank was not made keeping in mind any single entity. Rather, this decision has been made by aiming at the ‘broader context’ of maintaining the security and stability of the country’s banking sector and financial system. Das said, “I assure you that our banking sector will remain completely smooth and secure.” He said that the central bank is fully prepared to meet the challenges. “We are committed to maintain the stability of the financial and banking sector.”

On the ban on Yes Bank, Das said that there is always a debate about actively working for the Reserve Bank or taking a lot of time for any work. He said, ‘I think this is the right time. I can assure that RBI will soon come up with a plan for the revival of Yes Bank. Das said, “A bank or market based revival is always a better option than regulatory restructuring. The bank’s management was given full opportunity to prepare a credible revival plan. The bank also made efforts, but when we felt that we could not wait any longer and we should not wait any more, we decided to intervene.

The Reserve Bank on Thursday suspended Yes Bank after consulting the government and has also dissolved its board of directors. At the same time, customers of the bank are also prohibited to withdraw up to Rs 50,000 monthly. Yes Bank will not be able to disburse any new loan or even invest.

The central bank has appointed Prashant Kumar, former chief finance officer (CFO) of State Bank of India (SBI), as the administrator of Yes Bank. On the other hand, the SBI Board has given ‘in-principle’ approval to invest in cash-strapped Yes Bank. Late Thursday evening, the SBI board informed the stock markets, ‘The matter related to Yes Bank was discussed in the bank’s central board meeting on Thursday and the board has given in-principle approval to explore investment opportunities in the bank.