Bank News Yes: ‘There is no doubt’ about the merger of the Bank Yes with the SBI: Administrator Prashant Kumar | India Business News
“It is not absolutely a merger,” said Prashant Kumar, the administrator.
The Reserve Bank of India (RBI) took control of Yes Bank on Thursday, after the lender, which is charged with bad debts, failed to raise the capital it needs to stay above the mandatory regulatory requirements.
Placing Yes Bank under a 30-day moratorium, the central bank imposed limits on withdrawals to protect depositors and said it would work on a revival plan. The measure scared depositors, who rushed to withdraw funds from the bank.
Kumar, a former SBI chief financial officer, assured depositors that their money was safe and that the moratorium on Yes Bank could be lifted long before the April 3 deadline and that normal banking operations could resume as soon as Friday.
OSE President Rajnish Kumar said on Saturday that the state bank would need to invest up to Rs 2,450 crore ($ 331 million) to buy a 49% stake in Yes Bank as part of the initial phase of the bailout agreement, and He added that the survival of a troubled lender was a “must.”