New Delhi: After the RBI superseded the board of Yes Bank and placed withdrawal restrictions, Finance Minister Nirmala Sitharaman said that the crisis-hit lender’s exposure to stressed corporates dates before 2014.
“The exposure of Yes Bank to some of the very stressed corporates has been before 2014. These are public domain names and I am not violating any customer privacy Anil Ambani (Group), Essel Group, DHFL, IL&FS (and) Vodafone are some of the very stressed corporate to whom Yes Bank has been exposed,” she said.
After the confirmation that the companies of Anil Ambani and Chandra (Essel Group chairman) were among those who appeared in the list of borrowers, “crony capitalism” once again gained attention.
Addressing a press conference, Sitharaman said she is revealing these names as the opposition parties were “very keen to point fingers”.
“I am not here to continue carrying the stories of legacy. Yes, the Indian banking system has had severe challenges thanks to the way in which the government which existed between 2004-14 had handled the matter. I have reasons to put the blame on them,” she said.
Chidambaram’s suggestion
After reports of India’s biggest bank SBI participating in Yes Bank’s reconstruction scheme surface, political leaders started raising questions for not focusing on the recovery of dues.
Former Finance Minister, P. Chidambaram wrote, “SBI should take over the loan book of YES Bank for one rupee, recover the loans, and simultaneously assure the depositors that their money will be safe and will be returned”.
In another tweet, he gave figures of the loan book of Yes Bank. He wrote, “Will the government confirm that the Loan Book of YES Bank has grown under the BJP’s watch as follows: FY2014: 55,000 cr FY2015: 75,000 FY2016: 98,000 FY2017: 1,32,000 FY2018: 2,03,000 FY2019: 2,41,000”
SBI keen to acquire 49% in troubled lender
While the SBI has shown interest in investing in troubled private sector lender Yes Bank, the acquirer could hold upto 49 percent stake in the bank, as per a scheme of reconstruction proposed by the RBI on Friday.
The SBI will need to pay about Rs 11,760 crore for taking 49 percent stake in the restructured Yes Bank.
Bank customer faces difficulties
Yes Bank account holders are facing difficulties in withdrawing cash from bank’s Automatic Teller Machines (ATMs). They are forced to wait at the branches.
Customers started terming ‘Yes Bank’ as ‘No bank’.