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Fear of Yes Bank’s Downfall Existed For a Long Time, Here’s Why

Crisis in the banking sector just doesn’t seem to end.

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Video Editor: Vivek Gupta & Mohd Irshad Alam

Crisis in the banking sector just doesn't seem to end. Everybody knew that there was a crisis in Yes Bank for the past three years. Finally, the RBI has taken over Yes Bank and imposed a moratorium of 30 days.

There was a sense of panic among depositors as they can withdraw only Rs 50,000 till the moratorium is lifted. There are around 29 lakh savings accounts with the bank (retail depositors).
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Panic and chaos was witnessed at the branches of the bank. Even after the moratorium is lifted, we will have to see if depositors' faith can be restored. The biggest news is the rescue plan: SBI will take 49 percent of equity in the bank.

SBI will have to put Rs 5,000 crore at Rs 2 per share. More liquidity infusion is required. SBI will have to invest another Rs 12,000 crore to keep the bank alive.

Watch the video to know the whole story.

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