Industry body CII on Monday complimented the government and the Reserve Bank of India (RBI) for "swift intervention" in the restructuring of crisis-hit Yes Bank saying the move will restore confidence in the banking system.
A moratorium has been put on private sector lender Yes Bank, restricting withdrawals, besides taking over of the management.
"I would like to compliment the government and the RBI for the swift intervention in the restructuring of Yes Bank which will help restore confidence in the Indian banking system," CII President Vikram Kirloskar said in a statement.
He said both investors and depositors will be reassured that measures have been taken to ensure that a bank failure is avoided after announcement of the reconstruction plan of Yes Bank.
Financial stability is an important pillar of confidence building in the economy, Kirloskar added.
Earlier in the day, Yes Bank administrator Prashant Kumar expressed hope that the moratorium on the private sector lender would be lifted by Saturday, a comment that may calm harried depositors.
More From This Section
Yes Bank had deposits worth Rs 2,27,610 crore at the end of March 2019.
However, it fell to Rs 2,25,902 crore by the end of the first quarter ended June of the current financial year 2019-20 and further to Rs 2,09,497 crore by the end of the second quarter ended September 2019.
The difference in deposits between March 2019 and September 2019 reflects withdrawals to the tune of Rs 18,110 crore.
Disclaimer: No Business Standard Journalist was involved in creation of this content
