UPA didn't allow any bank to reach a state of collapse: Chidambaram slams Sitharaman
Amid Yes Bank crisis, former Finance Minister and senior Congress leader P Chidambaram on Friday slammed Finance Minister Nirmala Sitharaman and said that UPA did not allow any bank to reach a state of collapse.
Soon after Sitharaman addressed the media over the Yes Bank crisis, Chidambaram in a series of tweets wrote, "Listened to Finance Minister's address to the media. It is obvious that the crisis has been in the making since 2017 and the government did practically nothing except 'talk to the RBI'."
3:12 AM
Mutual fund industry stares at Rs 3,000-crore hole
The mutual fund (MF) industry is bracing for a full write-off of YES Bank’s perpetual bonds. This is after the Reserve Bank of India’s (RBI’s) draft reconstruction scheme proposed the writing-off of additional tier-I (AT-I) capital bonds issued by the lender.
While some fund houses have already written down the exposure to YES Bank’s AT-1 bonds to zero, others are monitoring the situation.
3:11 AM
YES Bank fallout: Additional tier-1 bondholders plan legal action
Holders of YES Bank’s additional tier-1 (AT-1) bonds, amounting to Rs 10,800 crore, are contemplating legal action, with the Reserve Bank of India’s (RBI’s) draft reconstruction scheme for the troubled lender suggesting a permanent write-down of these bonds outstanding as of March 5. According to the draft scheme, the write-down is “in conformity with the extant regulations issued by the RBI based on the Basel framework”.
3:10 AM
Raising capital immediate priority, says Prashant Kumar
Soon after taking over as administrator of ailing private sector lender YES Bank, Prashant Kumar got cracking to get the bank out of moratorium as soon as possible. Kumar, who was inducted into the new role from his job as chief financial officer (CFO) at State Bank of India (SBI), told Business Standard that bringing stability in operations, giving customers confidence about service and raising fresh capital are his immediate priorities.
SBI’s infusion of Rs 2,450 crore for 49 per cent stake in YES Bank will be treated as part of the investment book.
10:54 PM
ED raids Yes Bank Director Rana Kapoor's Mumbai residence
The Enforcement Directorate on Friday raided the Mumbai residence of Yes Bank founder Rana Kapoor in connection with a money laundering probe against him, officials said. They said the raid is being carried out at his Samudra Mahal residence in the western metropolis. The action is being conducted under the Prevention of Money Laundering Act (PMLA) and is aimed at collecting more evidence, the officials said. The central agency is probing Kapoor's role in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks that were reportedly received in his wife's accounts. Some other alleged irregularities are also under the agency's scanner, they added.
10:28 PM
Gujarat company withdrew Rs 265 cr day before Yes Bank moratorium
Vadodara Smart City Development Company, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), withdrew Rs 265 crore from Yes Bank a day before the Reserve Bank imposed a moratorium, an official said.RBI took control of Yes Bank on Friday because of a serious deterioration in its financial position.
9:32 PM
Icra downgrades Yes Bank bonds
Rating agency Icra downgrades Yes Bank's bonds worth Rs 52,612 crore. The downgraded bonds are Basel III-compliant Tier-II instruments and include Rs 10,900 crore worth hybrid bonds which has been lowered to negative, news agency PTI reported.
8:10 PM
FM rejects Chidambaram criticism
Finance Minister Sitharaman on Friday rejects senior Congress leader P Chidambaram's statement that Yes Bank's loan book had increased five times under the BJP-led government, saying "self-appointed competent doctors" created more problems in handling crisis at three banks during the UPA regime. She blamed Chidambaram for the crisis at Global Trust Bank in July 2004 and the problems at IDBI which had to merge with on-the-verge of collapsing United Western Bank in 2006, reports news agency PTI.
7:12 PM
Moody's downgrades Yes Bank
Moody's Investors Service downgrades Yes Bank Ltd's rating after the central bank imposed a 30-day moratorium that prevents the lender from making payment to its creditors. "The ratings remain under review, with the direction uncertain," Moody's said downgrading Yes Bank Ltd's long-term foreign currency issuer rating to Caa3 from B2.
7:07 PM
Paytm Bank restricts settlements
Paytm Payments Bank Ltd (PPBL) restricts transaction settlements, including those done through UPI platform, into cash-strapped Yes Bank's accounts. The decision follows the Reserve Bank of India's move to cap withdrawals from Yes Bank accounts at Rs 50,000 per depositor for a month and imposed strict limits on operations at the country's fourth-largest private lender that faced "regular outflow of liquidity" after an effort to raise new capital failed.
5:26 PM
FM says has sought RBI report on what caused Yes Bank crisis
I have asked the regulator (RBI) to explain what led to this problem (at Yes Bank) and specifically the people behind it: FM Sitharaman.
5:20 PM
UPA regime must answer for Yes Bank: FM Sitharaman
Things which happened at Yes Bank under the UPA government have not been answered. Things which happened (under NDA tenure) I am giving answers--the RBI is giving answers: FM Sitharaman.
5:15 PM
Yes Bank exposure started before 2014: FM
"The exposure of Yes Bank to some stressed corporates has been since before 2014. Won't mind taking their names as these are in public domain: Anil Ambani, Essel, DHFL, IL&FS, Vodafone": FM Sitharaman.
5:11 PM
SBI to invest up to 49% in Yes Bank: RBI draft plan
RBI draft plan: State Bank of India will invest up to 49 per cent in reconstructed YES Bank
5:07 PM
FM on Yes Bank salaries
Deposits and liabilities of Yes Bank will continue as before. Salaries will be assured for a year: FM Sitharaman.
People's money with Yes Bank is safe, Finance Minister Nirmala Sitharaman said after the central bank on Thursday night took control of India’s fourth-largest private lender, while a rescue plan is devised within 30 days.
Sitharaman spoke to journalists about the Reserve Bank of India's (RBI) draft plan to restructure Yes Bank.
The Reserve Bank of India has capped withdrawals at Rs 50,000 and imposed strict limits on operations at Yes Bank, saying it was forced to step in after the lender's latest effort to raise new capital failed and as the lender “was facing regular outflow of liquidity.”
 "Yes Bank crisis HIGHLIGHTS: ED raids Rana Kapoor's Mumbai residence")
