New Delhi: Yes Bank shares were down 24.97%, at Rs 27.65, on Friday, just hours after the Reserve Bank of India (RBI), late last night took over its board and imposed a withdrawal limit of Rs 50,000 per account till further orders. The development came after the bank, for months, found itself struggling with bad loans. Also Read - No Negotiations With Yes Bank, Matter Came to Board: SBI
Earlier, in a statement, the RBI said it had superseded the Board of Directors of Yes Bank Limited for a period of 30 days due to a serious deterioration in the financial position of the Bank. The move, the central bank, said, had been taken after consultation with the Centre.
Meanwhile, Prashant Kumar, a former Deputy Managing Director (DMD) and an ex-Chief Financial Officer (CFO) of the State Bank of India (SBI), has been appointed by the RBI as the administrator of Yes Bank.
Thursday’s developments came after reports emerged that earlier in the day that the government had approved a plan for the nation’s biggest lender, the SBI, to lead a consortium to buy a stake in Yes Bank. The SBI, on its part, has denied that negotiations have taken place to acquire a stake in Yes Bank, adding, however, that it had given in-principle approval to explore investment opportunity.
The Rs 50,000-cap, meanwhile, will be in effect till April 3. However, there will be a few exceptions like medical emergency, higher education, marriage and unavoidable emergency