As the Reserve Bank of India (RBI) released a revival plan for debt-ridden Yes Bank, finance minister Nirmala Sitharaman today held a press conference.Here's what she had to say about the Yes Bank moratorium crisis;
- YesBank lent money to some of the very stressed corporations like Anil Ambani Group, Essel, Dewan Housing Finance Corporation (DHFL), Infrastructure Leasing & Financial Services Limited (IL&FS), and Vodafone.
- Investigative agencies, SEBI noticed malpractices by top executives in March 2019
- Deposits, liabilities will not be affected; employment and salaries assured for at least one year
- RBI has assured that the reconstruction plan will come into play within the moratorium period; SBI has expressed willingness to invest in Yes Bank
- FM said, "Our govt is committed to ensuring that depositors' interests are safeguarded. I want RBI to ensure that due process of law is set to roll with a sense of urgency so that we should find out as to who led to the problem of this size & magnitude."
- Nirmala Sitharaman said. "I have asked RBI to ago into assessing what has caused these difficulties for the bank and clearly identify the roles played by various individuals in creating the problem and not addressing it."
- Since 2017, RBI has been continuously monitoring & scrutinizing Yes Bank. It noticed that there were governance issues and weak compliance in the bank. There was a wrong asset classification together with risky credit decisions.
You can watch the media briefing here;