Moratorium on Yes Bank may be lifted by Saturday: Administrator Prashant Kumar

The administrator of Yes Bank Prashant Kumar has said that the lender has full liquidity support from the Reserve Bank of India and State Bank, to deal with any flight of deposits from the bank. In an interview with ETs Saloni Shukla, Kumar a former CFO with SBI, also said that more clarity on the liquidity support will emerge in 3-4 days and post which they expect to lift the moratorium on withdrawals by Saturday. Edited excerpt:

Q) What is your assessment of the situation?

Right from the day we have kept the situation under control, I acknowledge that customers have faced hassles but not a single unpleasant incident happened at any of our branch or ATMs. After the initial hiccup, our customers are also responding very well to the situation.

My staff is very responsive they have been working day and night to smoothen customer interface. The ATMs were up and running on the first day itself, on Saturday ATMs of other banks were also accessible to our customers. I’m getting very good feedback from the customers. Today, we didn’t even find rush in our branches, so it is normalising very quickly.

I have been communicating directly to both customers and employees, messages and emails were sent from my desk on the first day of my coming in.

Q) When do you expect the moratorium to be lifted?

I would be correct to say that the moratorium would be lifted by Saturday, we are working overnight to do this much before the RBI deadline, Once the moratorium is lifted normalcy will be restored.

READ  Saving Europe by Destroying It From Within

The outer date is April 3. I would like to assure all depositors: there is absolutely no need to worry or to panic. Your deposits are absolutely safe. Our top priority is to make banking services seamless and hassle free for our customers.

Q) There is fear that there will be a flight of deposits once the moratorium is lifted. Are you prepared for that?

Flight of deposits is expected. I don’t envisage a situation where this won’t happen. But, since State Bank of India has already agreed to be the equity partner, its brand name will stem the deposit flow. Also, in the next three to four days more clarity is expected to come on the capital side as well from the RBI.

We will also reach out to the customers to assure them that nothing untoward will happen to their monies, they are dealing with a much better governed Yes Bank now. This bank now has the backing of SBI. I firmly believe that our customers will understand that and keep their deposits and businesses with our bank.

Q) When you say capital, do you expect a liquidity line from the RBI?

We have full support from the RBI as far as liquidity is concerned there is no issue whatsoever.

Q) There is fear that Yes Bank will be eventually merged with SBI.

There is no question of a merger, I don’t think that will happen.

Q) Going forward how soon will be the new board constituted and what would be your role?

The day the moratorium is lifted there will be a notification through which the board will be reconstituted. Once the new board is in it will meet and decide the future course of action.

READ  ET View: Nobel Prize catches up with discovery that has fuelled the smartphone revolution

As far as my role is concerned you will have to ask the RBI.



Please enter your comment!
Please enter your name here