- YES Bank will resume full banking services with effect from 18 March at 6 pm. The bank has said in a tweet that its 1132 branches across India will now be available to its customers.
Troubled private bank YES Bank will resume full banking services with effect from 18 March at 6 pm. The bank has said in a tweet that its 1132 branches across India will now be available to its customers.
“We will resume full banking services from Wednesday, Mar 18, 2020, at 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, after banking hours start to experience our service suite. You’ll also be able to access all of our digital services & channels,” said the tweet.
We will resume full banking services from Wed, Mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms@RBI @FinMinIndia
— YES BANK (@YESBANK) March 16, 2020
RBI’s moratorium on Yes Bank will be lifted by March 18, and by the end of this month the new board headed by CEO and MD Prashant Kumar will be set up, the government had said last week.
On Friday, the government told the Yes Bank reconstruction scheme 2020. In addition to Kumar, Yes Bank’s revamped board would have Sunil Mehta (former non-executive chairman of the PNB) as a non-executive president, and Mahesh Krishnamurthy and Atul Bheda as non-executive directors.
According to the reconstruction strategy, State Bank of India will nominate two directors on the newly formed board, holding up to 49 percent stake in Yes Bank, and RBI will be able to name one or more additional directors.
Any investor other than SBI can appoint one director on the board of Yes Bank with a 15 percent voting right in the private lender.
ICICI Bank, Housing Development Finance Corp Ltd, Axis Bank, Kotak Mahindra Bank, and Bandhan Bank will also participate and invest in Yes Bank, a consortium led by SBI.
The RBI had placed a moratorium on Yes Bank on March 5, limiting withdrawals per depositor to Rs 50,000 till April 3. This superseded the private sector lender’s troubled board and appointed Prashant Kumar as its administrator.
More banks announced the following week that they would be making investments in YES Bank. ICICI Bank and HDFC mortgage lender will each spend 1,000 rs of crore. Axis Bank is going to spend Rs 600 crore while Kotak Mahindra Bank will bring Rs 500 crore into it. Bandhan Bank and Federal Bank will each spend 300 Rs of crore, while IDFC First Bank will put 250 Rs of crore.
The sudden crisis of YES Bank created a huge uncertainty among the shareholders, customers, market, and authorities. Partner payment apps of YES Bank such as PhonePe suffered a huge setback in the middle of the night. Although PhonePe recovered in less than 12 hours, still the impact on costumers is deemed to be huge.
All we can do is to wait and see who invests in YES Bank and how it is bailed of this crunch situation. The economy is already dealing with the setbacks of the CoronaVirus outbreak. RBI has announced a reconstruction plan for YES Bank and we hope it helps the bank and consumers.