Yes Bank shares in early trade on Friday plunged by a whopping 85% after RBI suspended the private sector lender’s board for a period of 30 days.
This comes “owing to serious deterioration in the financial position of the Bank,” which has failed to raise additional capital from the market to fight its debt woes.
The RBI, following the announcement, has capped the withdrawal limit to Rs 50,000 for its account holders. The internet banking servers of Yes Bank also hit a nag after the announcement was made as people rushed to make transfers.
Sensex in early trade was also down to a whopping 1,400 points on Friday.
RBI Governor Shaktikanta Das said that the decision was taken after consideration on a larger level and not an individual entity level. The decisions are aimed to ensure the safety of the financial system, added the governor.
The RBI governor also assured, “RBI stands ready to intervene in whatever way required to respond to epidemic challenges”.
As per Shaktikantan Das, Yes Bank resolution will now be done very swiftly and that 30 days is an outer limit.