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Falling deposits are the latest problem for Yes Bank after bad loans

The lender issued a statement last month assuring customers about its liquidity and stability and said it is making every effort "to financially strengthen the bank further."

YES Bank
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Suvashree Ghosh & Anto Antony | Bloomberg Mumbai
When a former YES Bank executive started selling his stake in September, the lender’s top managers watched for any sign that the resulting drop in share price would trigger a rush to withdraw deposits.

The stock sales came as customers of a regional lender — Punjab & Maharashtra Co-operative Bank — were lining up outside its branches to withdraw their money following an alleged management fraud. Rampant speculation online about broader contagion forced the central bank to issue rare statements assuring the public of the safety of the financial system.

YES Bank’s loss of mom-and-pop deposits in September was manageable in the

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