The new hoo-ha in the town is that Rana Kapoor, the co-founder of YES Bank has been registered for the money laundering case by the Enforcement Directorate (ED). Sources convey that Kapoor’s residence is being searched since he has been booked by the ED under Prevention of Money Laundering Act (PMLA).
A moratorium has been imposed on Yes Bank and there is a restriction of withdrawals but the RBI issued a draft reconstruction scheme, which is for the private sector lender, and further opined that SBI is “willing” to invest.
The RBI further proposed that “The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post-infusion it holds 49 per cent shareholding in the reconstructed bank at a price not less than Rs 10 (Face value of Rs 2) and premium of Rs 8″
To ensure the customer’s “financial safety”, Sitharaman expressed that the depositors will not lose their money and high priority will be given to Yes Bank customers so that they can withdraw amount within the required cap.
She further conveyed, “I want to assure every depositor that their money shall be safe. Their monies are safe. I am in constant contact with the RBI and the steps that are being taken in the interest of depositors, banks and economy. We are fully seized of the development”
At a banking event in Mumbai, the RBI Governor Shaktikanta Das said that the 30-day moratorium is just an outer limit and further expressed that the interest of the depositors will be fully protected.
Yes Bank has been grappling to raise capital. It initially aimed to raise $2 billion at this fiscal but since there were no investors, it was trimmed down to $1.2 billion. The stock of Yes Bank plummeted 80% during the intra-day trade on BSE where it then closed up to 56.04 % with Rs 16.50 apiece.