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Yes Bank revival 'well before' moratorium period ends

New Delhi - Depositors assured that their money is safe and there is no reason to panic

Yes Bank's RBI-appointed administrator Prashant Kumar has said a solution is being worked upon to revive the lender well before the moratorium period of 30 days ends.
Kumar, an ex-chief financial officer of State Bank of India (SBI), also assured depositors that their money is safe and there is no reason to panic.
"The current moratorium has been brought into effect keeping the depositors' interest in mind and towards restoring their confidence. A solution is being worked upon to revive the bank well before the moratorium period of 30 days ends," Kumar said in a statement issued by Yes Bank.
Yes Bank was late on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs50,000 per account. The bank will also not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
The moratorium period will be in place until April 3.
Due diligence is on
SBI chairman Rajnish Kumar on Saturday said the bank has time until Monday to respond back to the Reserve Bank of India (RBI) on the draft scheme for the rescue of Yes Bank and it may or may not pick up a 49 per cent stake.
"Whether SBI takes a 49 per cent or 26 per cent stake in Yes Bank will depend on the investment involved. We are also examining the interest received from some other investors. SBI board will take the final call on this," Kumar said.
He told a Press conference in Mumbai that the SBI's legal team has been doing due diligence on the draft scheme proposed by the RBI. The central bank on Friday came out with the "draft reconstruction scheme", under which SBI will bring in Rs25 billion for a 49 per cent stake in the private sector bank.
"Don't believe that our contribution toward Yes Bank will exceed Rs100 billion," he said.
Kumar said SBI will try to implement the resolution plan before the RBI deadline. Buying a 49 per cent stake in Yes Bank would involve an investment of Rs24 billion, that is if it decides to go alone. Kumar also said many potential investors, 23 in total, have approached SBI after seeing the investment scheme. The minimum investment for SBI would be Rs55 billion if it picks a 26 per cent stake in Yes Bank.
"SBI may or may not pick the entire 49 per cent in the bank," he said.
Yes founder faces case
Meanwhile, the Enforcement Directorate registered a money laundering case against Yes Bank founder Rana Kapoor, who was taken to the agency's office in Mumbai on Saturday for further questioning.
Kapoor, who was grilled by central agency's officials on Friday night at his Samudra Mahal residence in Mumbai, was shifted to the ED office in the metropolis around 12:30pm.
ED officials said Kapoor was questioned throughout the night, with some rest time.
A senior ED official connected with the probe told IANS: "Kapoor will be questioned about Yes Bank loans to Dewan Housing Finance Limited."