Yes Bank crisis Live Updates: Shares hit record low as market price erodes by almost Rs 8,000 crore

Yes Bank crisis Live Updates: Shares hit record low as market price erodes by almost Rs 8,000 crore

A day after the Federal Reserve Bank of India (RBI) placed restrictions on Yes Bank, its shares have fallen sharply on the stock exchange . The banking regulator on Thursday superseded the board of the troubled private lender with immediate effect and placed it under a 30-day moratorium. it's also appointed former depository financial institution of India CFO Prashant Kumar to tug the bank out of a crisis. Investors should also note that no Futures and Options (F&O) contracts shall be available in Yes Bank for trading within the equity derivatives segment from May 29, 2020. the event has also had a wider effect on banking stocks, which were trading in red on Friday. Meanwhile, panicked Yes Bank customers rushed to ATMs after the withdrawal limit was capped.

Paniced Yes Bank customers form queue at one among the bank's branches each day after RBI placed restrictions on the troubled bank.

Shares hit record low as market price erodes by almost Rs 8,000 crore

Yes Bank shares on Friday hit a record low after RBI places restrictions on the bank. Its shares, which traded at Rs 404 at its peak, fell to almost Rs 5.65 today. While it's recovered slightly on assurances given by RBI and SBI, the bank's market cap has eroded by almost Rs 8,000 crore.

No lesson learnt: Asaduddin Owaisi slams govt

AIMIM chief Asaduddin Owaisi has slammed the govt and said that it's not learnt any lesson from the ILFS crisis and PMC scam. "No lesson learnt from ILFS, PMC scam, people cannot withdraw their own money. Yes bank is organising international seminar today, Bank Chairman has praised demonetization, -Govt isn't worried about the economy it just wants to divert attention."

Yes Bank's fall: A Timeline of the crisis

Soon after the Federal Reserve Bank of India took control of the country's fifth-largest private sector lender Yes Bank and imposed withdrawal limits on its, panic has spread among investors and depositors. Shares of Yes Bank plummeted sharply on Friday because the stock plunged nearly 85 per cent. consistent with Reuters, the sharp fall exhausted Rs 79.43 billion from Yes Bank's market price .

Here may be a timeline of the bank's fall:

September 19, 2018 - RBI refuses to offer Chief military officer Rana Kapoor an extension to his term - Kapoor to step down by end of January 2019

November 27, 2018 - Moody’s cuts bank’s foreign currency issuer rating; changes outlook to negative’ from stable’ citing concerns over corporate governance

January 24, 2019 - Yes Bank hires the top of Deutsche Bank India Ravneet Gill as its new CEO

February 13, 2019 - Yes Bank says RBI observed no divergences from financial institution norms within the bank’s asset classification and provisioning

April 8, 2019 - Pressed for capital, Yes Bank says it'll consider raising funds by issuing shares and debt securities

April 26, 2019 - Rising levels of bad loans trigger Yes Bank’s first-ever quarterly loss; Macquarie Research double-downgrades stock to underperform’, stock tanks 30% on next trading day

May 14, 2019 - RBI appoints ex-central bank Deputy Governor R. Gandhi as additional director to Yes Bank’s board - a rare move signalling an increased level of scrutiny on the lender

July 17. 2019 - Yes Bank reports 91% drop by first-quarter profit, as provisions surge and asset quality deteriorates sharply; gross bad loan ratio stood at 5.01%

September 10, 2019 - Yes Bank CEO Gill says lender is on the brink of securing a deal to sell a minority stake to a worldwide technology company to assist boost its capital

October 3, 2019 - CEO Gill says bank is in talks with private equity firms, strategic investors and family offices to boost additional capital

October 31, 2019 - Yes Bank gets binding investment offer of $1.2 billion from global investor, sends stock 39% higher

November 1, 2019 - Yes Bank reports bigger-than-expected loss for the second quarter, as bad loan ratio deteriorates to 7.39% and provisions swell to 13.36 billion rupees

November 29, 2019 - Yes Bank says it aims to boost up to $2 billion during a massive issue of latest shares to institutional investors and family offices; says it's in talks to sell shares worth $1.2 billion to Canadian investor Erwin Singh Braich and Hong Kong-based SPGP Holdings, which he backs

January 10, 2020 - Yes Bank rejects Braich’s investment, says will launch a $1.4 billion share sale, after a board member’s resignation casts more doubt on the lender’s future

February 12, 2020 - The lender says it'll delay disclosing its October-December earnings by a minimum of a month, which it had been in talks with potential investors for a cash infusion

February 12, 2020 - Bank says it received non-binding expressions of interest from JC Flowers, Tilden Park Capital Management, OHA (UK) and Silver Point Capital.

March 5, 2020 - India places Yes Bank under moratorium, with RBI taking up from its board for 30 days and imposing limits on withdrawals to guard depositors

(With inputs from Reuters)

Yes Bank crisis puts 32 MF schemes at risk: Report

The Federal Reserve Bank of India's decision to supersede Yes Bank's board and place restrictions thereon has put mutual funds (MFs) in danger , reported Business Standard. As per the report, MFs are bracing for a steep hit on their exposure to the extra tier-1 (AT-1) bonds of Yes Bank. it's worth mentioning that risks carried by these bonds are above other debt securities.

The report adds that as many as 32 MF schemes are in danger due to exposure to Yes Bank debt. the entire exposure is on the brink of Rs 2,800 crore as of January 31, 2020. Industry experts said the concerned MF schemes face downgrades and repricing of those bonds.

All hopes pinned on RBI's restructuring plan

Tackling the Yes Bank crisis will now depend totally on the Federal Reserve Bank of India's restructuring plan and whether SBI invests within the bank to accumulate it as a part of the restructuring process. Therefore, all eyes will now get on the RBI over subsequent 30 days because it prepares the decide to revive the ailing bank.

No neet to panic, money is safe: RBI, SBI assure Yes Bank depositors

Both Federal Reserve Bank of India and depository financial institution of India assured Yes Bank depositors that their money is safe and there's no got to panic.

SBI Chairman Rajnish Kumar said, "We have intimated the in-principle approval of intent to take a position in yes bank to exchanges

and once rbi prepares its restructuring scheme on yes bank, then we'll take a call."

Interest of Yes Bank depositors are going to be protected: CEA

Chief Economic Advisor Krishnamurthy Subramanian on Friday said all options are into account for restructuring Yes Bank and guaranteed that depositors' money is safe. His remarks come each day after the cash-starved lender was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board with immediate effect. (PTI)

Yes Bank net banking services down, account holders panic

Yes Bank customers face issues in accessing net banking services since last night as thousands of consumers of the troubled bank struggle to transfer funds or check any checking account details online, reported Livemint.com. There has been a serious surge in Yes Bank net banking services since RBI placed a 30-day moratorium on the bank and capped withdrawals at Rs 50,000.

Not just netbanking but individuals using UPI services to transfer funds were also affected.

Dear customer, thanks to heavy traffic on our NetBanking, we are temporarily unable to process your request. Please try again later or use the YES mobile app to hold out your transactions," reads a message flashed on the bank’s online banking page said.

Since most did not transfer cash, there has been a big surge in queues outside the bank's branches and ATMs across the country. the govt and RBI assured that the interest of the depositors are going to be protected at any cost.

12:18 PM ISTP

It shows complete regulatory failure: P Chidambaram on Yes Bank crisis

Senior Congress leader and former minister of finance P Chidambaram said Yes Bank customers face an equivalent issue faced by PMC Bank customers which it shows complete regulatory failure.

He said, "It shows complete regulatory failure. i'm wondering if this is often the top or will there be more within the line. Yet the govt. keeps absolutely silent. let's examine what depositors of YesBank do, i feel they're as worried as depositors of PMC Bank. let's examine what unfolds now."

Assure Yes Bank depositors that funds are safe: CEA Subramanian

Commenting on the Yes Bank crisis, Chief Economic Advisor Krishnamurthy Subramanian reassured depositors and customers of the bank that their funds will remain an equivalent .

"I want to assure all depositors that their funds will remain safe, and there's no got to panic," he said while chatting with press agency ANI.