NEW DELHI: The shares of private sector lender
Yes Bank crashed nearly 65 per cent on Friday as the Reserve Bank of India (RBI) decided to supersede the board of directors of Rana Kapoor-promoted lender and limited cash withdrawal to Rs 50,000.
On the BSE index, the
Yes Bank stock
cracked 64.86 per cent to Rs 12.95. The stock had closed at Rs 36.85 on Thursday after zooming over 25 per cent.
However, the Reserve Bank stated that depositors can withdraw up to Rs 5 lakh for medical treatment, higher education, expenses on marriage and other ceremonies, and "unavoidable emergencies". The cap applies across even multiple accounts of a depositor.
The RBI has appointed deputy managing director and chief finance officer of State Bank of India (SBI), Prashant Kumar, as an administrator of the bank. Although the central bank has said that the moratorium will last for 30 days, a plan involving SBI is in the works.
Late Thursday night, SBI notified stock exchanges that its board has “granted an in-principle approval to explore an investment opportunity in the bank”. Among the options said to be on the table are, one, SBI leading a consortium of new owners, including Life Insurance Corporation, and second, a merger.
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