Yes Bank Crashes 85% Today: Reserve Bank of India (RBI) suspended the Yes Bank’s board for 30 days for “owing to a serious deterioration in the financial position of the Bank” and imposed a withdrawal limit of Rs 50,000 on its account holders till April 3.
RBI said a suspension imposed on Yes Bank highlighting that the bank’s financial capability undergone a steady decline largely due to the inability to raise capital. After a day of RBI announcement, Yes Bank crashes 85% of its share value to trade at Rs 5.65. Then Yes Bank share price closed at Rs 36.80 on Thursday.
Finance Minister Nirmala Sithraman has assured depositors there will be no loss to any depositor of Yes Bank.
Earlier in the day, RBI Governor Shaktikanta Das said the central bank has a scheme to revive the beleaguered lender. “We will take swift action and we have a scheme in place to revive the bank,” news agency Press Trust of India reported.
The largest lender in the country, State Bank of India (SBI) considering a wide range of rescue options to fight Yes Bank, including a full acquisition of its competitor in the private sector.
Effectively, Yes Bank should have no equity value left, Sandip Sabharwal, a Mumbai-based fund manager said.
The S & P BSE Sensex index fell as much as 1459.52 points to touch 37,011.09 on the shortfall in the first few minutes of trading. The broader NSE Nifty benchmark dropped to a low of 10,827.40, down 441.60 points from the previous ending.