Former RBI governor Bimal Jalan has blamed Yes BankNSE -11.95 % for the crisis at the private lender and said some steps could have been taken earlier as the problems in the bank were visible two-three years ago.
"I don't think we should blame RBI or finance ministry for Yes Bank crisis. For Yes Bank crisis, Yes Bank is responsible," he told PTI in an interview.
Facing the collapse of the fourth largest private lender, the Reserve Bank sacked Yes Bank management and placed it under an administrator in the evening of March 5 with a 30-day moratorium.
"The only point that you can make is that the problems in Yes Bank were already visible 2-3 years ago and some steps could have been taken earlier," Jalan observed.
On March 14, the government notified the rescue plan drafted by the RBI under which State Bank of India would pick up around 49 per cent equity in Yes Bank.
Private lenders joined SBI to shield the banking sector from a widespread crisis by injecting Rs 10,000 crore into the bank with SBI alone infusing Rs 6,050 crore.
ICICI Bank and HDFC pumped in Rs 1,000 crore each, Kotak Mahindra Bank and Axis BankNSE -1.78 % Rs 600 crore each, Federal BankNSE -5.74 % and Bandhan BankNSE -7.26 % Rs 350 crore each and India First Bank Rs 250 crore.
The entire contents of this article are solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation by the Author. Compliance Calendar LLP and the Author of this Article do not constitute any sort of professional advice or a formal recommendation. The author has undertaken utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify and confirm the updates from the genuine sources before acting on any of the information’s provided hereinabove. Compliance Calendar LLP shall not be responsible for any loss or damage in any circumstances whatsoever.