Yes Bank Resumes Services, Depositors Can Now Withdraw Money Without Restrictions
Yes Bank on Wednesday said it has resumed operations and all its banking services are available for its customers.
"Our banking services are now operational. You can now experience the full suite of our services. Thank you for your patience and co-operation," the lender said in a tweet.
The Reserve Bank of India (RBI) on March 5 had imposed restrictions on the crisis-ridden lender under which the bank's customers were allowed to withdraw up to Rs 50,000 till April 3.
The government notified the Yes Bank reconstruction scheme last week.
The draft noted that all employees of the reconstructed Yes Bank will continue in its service with the same remuneration and on the same terms and conditions of service (T&C), including terms of determination of service and retirement, as were applicable to such employees immediately before the appointed date, at least for a period of a year.
The board of directors of the reconstructed Yes Bank will, however, have the freedom to discontinue the services of the key managerial personnel (KMPs) at any point of time after following due procedure.
The offices and branches of the reconstructed bank will continue to function in the same manner and at the same places they were functioning prior to the effective date, without in any way being affected by this scheme.
The RBI said it will be open to the reconstructed Yes Bank to open new offices and branches or close down existing offices or branches, in accordance with the extant policy of the central bank.
In its 'Yes Bank Ltd. Reconstruction Scheme, 2020', the RBI said the strategic investor bank will have to pick up a 49% stake and it cannot reduce its holding to below 26% before three years from the date of capital infusion.
The draft added that authorised capital shall stand altered to Rs 5,000 crore and number of equity shares will stand altered to Rs 2,400 crore of Rs 2 each.
Yes Bank has been bailed out by a State Bank of India (SBI)-led consortium with an equity investment of Rs 10,000 crore. That included investments from HDFC, Axis Bank, ICICI Bank and Kotak Mahindra.
Yes Bank’s deposits fell 34% to Rs 1.37 lakh crore between September 30 and March 5, with withdrawals of Rs 72,000 crore. Savings deposits fell 25% sequentially to Rs 29,764 crore at the end of the December quarter while term deposits fell 22% to Rs 1.12 lakh crore and current account deposits declined by 6% to Rs 23,440 crore.
The bank on March 14 reported a record loss of Rs 18,564 crore at the end of December quarter against a profit of Rs 1,000 crore a year ago.