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Deposits at Yes Bank witnessed a steady decline during the March-September period last year as customers withdrew over Rs 18,100 crore, in a reflection of falling confidence in the bank.
Yes Bank, which has been put under a moratorium by the Reserve Bank till 3 April, during which customers are not allowed to withdraw more than Rs 50,000, had deposits worth Rs 2,27,610 crore at the end of March 2019 (or end of 2018-19 fiscal).
However, it fell to Rs 2,25,902 crore by the end of the first quarter ended June of the current fiscal year (2019-20) and further to Rs 2,09,497 crore by the end of the second quarter ended September of FY20.
Data beyond September is not available as the cash-strapped bank had announced that there will be a delay in publishing its results for the third quarter.
A Delhi-based customer said that he sensed that all was not good with the private sector lender and withdrew his majority of deposits beforehand, leaving only with the minimum balance to keep the account active.
During the many months in the past, the bank battled hard to keep the rumour mongering at the bay, issuing statements that everything was fine and customers need not to worry about their deposits.
"We strongly refute such speculations which we suspect is a deliberate and malicious attempt to create instability in the institution by undermining investor and client confidence. We have apprised the authorities of these developments. The financial position of Yes Bank is sound and stable and its liquidity and operating performance continue to be robust," the bank said in a statement issued on 8 July 2019.
Another customer said he had limited deposits in Yes Bank and was not really worried much as the insurance amount has now been raised to Rs 5 lakh.
A couple of other customers said they have pulled out all their money from the bank so there is nothing to worry for them.
However, a female customer reposed confidence and looked calmed, saying the government and the Reserve Bank have swung into action very swiftly and there is no need to worry.
Even as the customers were hassled since last Thursday late evening, queuing up before the Yes Bank ATMs across the country, the bank has assured that their deposits are safe and they can withdraw the money both for their own and other banks ATMs.
During the moratorium period, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
Bank's financial health is not sound as it has failed to raise enough capital under the new leadership of Ravneet Singh Gill, who took charge and Managing Director & CEO from 1 March 2019.
Troubles at new generation private sector started brewing up ever since the Reserve Bank denied extension to its co-founder Rana Kapoor-who now is in the custody of the Enforcement Directorate for financial mismanagement and money laundering charges -to continue and MD and CEO in September 2018 and had asked it to find a new successor.
The bank has a pan-India presence with branches in over 29 states and Union Territories. There were 1,450 ATMs, and 1,120 branches by end of March 2019.
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