No need to panic as RBI Governor has assured Yes Bank depositors: SBI Chairman

New Delhi: SBI Chairman Rajnish Kumar on Friday said that there is no need to panic for depositors of Yes Bank as RBI Governor has assured them in this regard in a press statement.

“RBI Governor has very clearly said in a press statement that there is no need to panic. All depositors’ funds are protected. We gave the information of in-principle approval of SBI’s investment to the stock exchange yesterday,” Kumar told reporters here.

Earlier, Chief Economic Advisor Krishnamurthy Subramanian said that there is no need for depositors to panic and assured all depositors’ funds will remain safe.

RBI Governor Shaktikanta Das said that there will be a swift action from the central bank to put in place a scheme to revive Yes Bank.

“The 30 days which we have given is the outer limit. You will see very swift action from the RBI to put in place a scheme to revive. A market-based resolution of the problem, a bank-laid, investor-laid resolution of the problem is always preferable,” he said.

“You have to give time to the bank and management to take the steps. The RBI intervened when we found it was not working out,” Das said.

Yes Bank stocks plunged by 57.3 per cent intra-day to Rs 15.70 apiece today.

Public sector State Bank of India too dipped by 6.48 per cent to close the day at Rs 269.80 after it said the board of directors has given in-principle approval to explore an investment in Yes Bank. But no negotiations have taken place yet.

The move by RBI comes nearly six months after it did the same with Mumbai-based Punjab and Maharashtra Cooperative (PMC) Bank.

On Thursday, the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank’s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.

During the period of moratorium, the Yes Bank Ltd will not, without the permission in writing of the Reserve Bank of India, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings, current or any other deposit account. (ANI)