Interest of Yes Bank depositors will be protected: CEA

Chief Economic Advisor Krishnamurthy Subramanian on Friday (March 6) said all options are under consideration for restructuring Yes Bank and assured that depositors money is safe.

His remarks come a day after the cash-starved lender was placed under a moratorium, with the RBI capping deposit withdrawals at ₹50,000 per account for a month and superseding its board with immediate effect.

“The RBI has taken right steps. Yes Bank depositors money is safe,” he told reporters after meeting Finance Minister Nirmala Sitharaman.

Asserting that the interest of Yes Bank customers will be protected, Subramanian said all options are under consideration for restructuring Yes Bank. With the RBI superseding Yes Bank board, the troubled lender will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

The board of country’s largest lender State Bank of India has given “in-principle” approval to invest in Yes Bank. Yes Bank has been struggling to execute a capital raising plan for the last six months. Its core equity tier-I ratio has slipped to 8.7 per cent as of September. The bank has also delayed its December quarter results.