'Common man facing crisis over Government's Yes Bank mismanagement,' says Adhir Ranjan

Amid the ongoing Yes Bank crisis, the leader of Opposition in Lok Sabha Adhir Ranjan Chowdhury on Thursday spoke about the crisis in the Lower House of the Parliament and stated that the 'bank was looted under the government's watch.'

Adhir Ranjan had sought to raise the issue during the zero hour, but, Speaker Om Birla stated that he will allow the Congress member to speak if he raises an issue under the relevant rules.

"Depositors are being fleeced by banks at regular intervals. Yes Bank was looted under the government's watch," Chowdhury said. Adding further, he also accused the government of mismanagement and stated that the common man was facing difficulties. 

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SBI To Buy 725 Crore Shares Of Yes Bank At Rs 10 Each

In the latest development to the Yes Bank crisis, the State Bank of India declared that it would purchase 725 crore shares of Yes Bank at Rs 10 per share subject to regulatory approvals. It made this disclosure to the stock exchange under Regulation 30 of SEBI (Listing Obligations and Disclosures Requirements) Regulations 2015.

The SBI’s Executive Committee of Central Board approved this crucial decision. At the same time, the SBI reiterated that its shareholding in Yes Bank would remain within the 49% paid-up capital of Yes Bank, as prescribed by the RBI’s draft reconstruction scheme. This development comes nearly a week after the RBI imposed a 30-day moratorium on Yes Bank, capping the withdrawal limit for customers to Rs.50,000.

READ | 'Govt taking strict action, SBI moving in that direction': RS Prasad on Yes Bank crisis

The moratorium imposed on Yes Bank

Earlier on March 5, the RBI imposed a moratorium on Yes Bank, superseding its Board of Directors. In the meantime, former Chief Financial Officer of SBI Prashant Kumar was appointed as its administrator. The RBI cited Yes Bank's “inability to raise capital to address potential loan losses” and “serious governance issues” as some of the reasons for taking action.

A day later, the RBI unveiled a draft reconstruction scheme of Yes Bank in the public domain. As per the scheme, State Bank of India expressed its willingness to invest in Yes Bank and participate in the reconstruction process. Moreover, the RBI invited suggestions and comments from the members of the public.  

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(With inputs from ANI)