MUMBAI: The Reserve Bank of India superseded the Board of Directors of Yes BankNSE 25.60 % and imposed a moratorium for a month as its financials deteriorated, but has promised to come up with a credible restructuring plan in the next few days that may involve merging it with another lender.
The regulatory action follows extended period of inability of the bank management to come up with fund raising that would have helped it provide against loan losses. Prashant Kumar, former deputy managing director at State Bank of India, would be the administrator.
Depositors can pull out a maximum of Rs. 50,000 per head even if an individual has more number of accounts, a government gazette notification said. The outstanding amounts on drafts and pay orders issued so far would be paid in full, it said.
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