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Yes Banking crisis: Sitharaman blames loans under UPA; Chidambaram returns the blow


NEW DELHI: Yes Bank’s current crisis has triggered a war of words between the Union finance minister, Nirmala Sitharaman, and the leader of Congress, P Chidambaram. Addressing a press conference on the crisis, Sitharaman blamed loans granted under the UPA regime to companies stressed by the financial problems of the private lender.

Sitharaman, addressing the media, stated that Anil Ambani Group, Essel, IL&FS, DHFL and Vodafone were among the stressed companies in which Yes Bank had exposure before 2014.

Chidambaram responded quickly to Sitharaman’s charges. The former Union finance minister turned to Twitter to attack Sitharaman and wrote: “He heard FM’s address from the media. It is obvious that the crisis is taking place since 2017 and the government practically did nothing except talk to the RBI “.”

Taking photos in the UPA government, Sitharaman in his speech cited that the United Western Bank collapsed in 2006 under “self-appointed competent doctors.”

The finance minister also mentioned that RBI’s intense scrutiny of Yes Bank began in 2017 and that the situation has been “closely monitored.”

Chidambaram, in another tweet, stated that Sitharaman blamed the UPA against its own claim and wrote: “As expected, the FM indirectly blamed the UPA for the near collapse of YES Bank against its own claim that the crisis began in 2017 “. ”

In a series of tweets, former finance minister Chidambaram asked why the Yes Bank loan book was not recognized and questioned how the loan amount “miraculously jumped from Rs 55,633 million in March 2014 to 2,41,999 million. rupees in March 2019 “.

Sitharaman said that since 2017, the RBI noted governance problems and weak regulatory compliance at Yes Bank, in addition to an incorrect classification of assets and risky credit decisions. When finding risky credit decisions, the RBI advised a change in management, he added.

These decisions were made in the interest of the bank’s health, and a new executive director (Ravneet Gill) was appointed in September 2018 and the bank’s cleanup began, he said, adding that the investigation agencies had also found irregularities.

To which Chidambaram replied and tweeted: “FM focused on what happened during the UPA. What happened was that UPA did not allow any bank to reach a state of collapse. Under UPA, weak banks merged with other banks in time. to avoid a crisis. ”

Earlier in the day, Congress leader Rahul Gandhi investigated the government led by BJP about the moratorium imposed on Yes Bank, and alleged that Prime Minister Narendra Modi and his “ideas” had destroyed the country’s economy.

“No yes, Bank. Modi and his ideas have destroyed India’s economy,” the former president of Congress said in a tweet.

Meanwhile, Yes Bank shares fell 56.04 percent to Rs 16.20 in the BSE index.

Times of India