Beleaguered lenders YES Bank, Punjab and Maharashtra Co-operative Bank (PMC Bank), and Lakshmi Vilas Bank (LVB) have a common link, besides being troubled names.
When in deep distress, the Reserve Bank of India (RBI) did not go for the tried-and-tested measure of merging them with a public or private sector bank. Rather, it took a different approach towards their rescue. In the case of YES Bank, State Bank of India took only 49 per cent stake (with private lenders acquiring a smaller stake) to ensure stability. PMC Bank, placed under moratorium in September 2019, stunned many by welcoming applications from