Yes Bank crisis: Will not let any institution to fall, says FM Nirmala Sitharaman
Follow UsStory highlights
Sitharaman addressed a press conference on the Yes Bank crisis a day after RBI placed the organisation under a 30-day moratorium.
After shares of Yes Bank fell 56 per cent on Friday, Union Finance Minister Nirmala Sitharaman said that she would not let any institution to fall off the cliff.
Sitharaman addressed a press conference on the Yes Bank crisis a day after RBI placed the organisation under a 30-day moratorium.
Finance Minister Nirmala Sitharaman: #YesBank lent money to some of the very stressed corporations like Anil Ambani Group, Essel, Dewan Housing Finance Corporation (DHFL), Infrastructure Leasing & Financial Services Limited (IL&FS), and Vodafone. pic.twitter.com/D7a5tzuYS9
— ANI (@ANI) March 6, 2020
The finance minister also assured the employees that their jobs and salaries would remain secured for one year. She also said that the deposits and liabilities would be unaffected by the crisis.
Union Minister Nirmala Sitharaman on #YesBank: Investigative agencies, SEBI noticed malpractices by top executives in March 2019 https://t.co/vEoaKFUIDs
— ANI (@ANI) March 6, 2020
Earlier today, shares of Yes Bank fell 84 per cent before recovering to close 56 per cent lower at Rs 16.20. Its market valuation plummetted Rs 5,266.23 crore to Rs 4,131.77 crore on the BSE.
"Since 2017, RBI has been continuously monitoring and scrutinizing Yes Bank. It noticed that there were governance issues and weak compliances. There was a wrong asset classification together with risky credit decisions," Sitharaman said.
Sitharaman also said that the government is "committed to ensuring that depositors' interests are safeguarded".
Earlier on Thursday, depositors of the bank rushed to ATMs to withdraw cash after the apex bank placed it under a moratorium, capping maximum withdrawals at Rs 50,000 per account for a month.
(with inputs from agencies)