In a positive upswing from the record lows so far, the share price of Yes Bank shares rose by 50% in early trade on March 18th, 2020. With the moratorium on the bank ending at 6 pm on Wednesday in a preponement of the earlier scheduled date of 6th April, all regular operations and banking services are set to resume immediately thereafter.
Prashant Kumar, the Reserve Bank of India (RBI) appointed administrator and the next MD and CEO of the bank’s newly constituted board said –
“Further to our email dated, March 10, we are happy to apprise you that Yes Bank will resume full banking services from 18:00 hours IST on Wednesday, March 18. We invite you to any of our 1,132 branches across India from March 19, post commencement of banking hours to experience our full suite of services,”
He went on to further reiterate that there should be no worries on the liquidity front since complete normalcy of operations would be in place post 6 pm on Wednesday.
A moratorium had been issued by the RBI on March 5th on Yes Bank considering its poor financial health arising out of bad loans which restricted withdrawals to Rs 50,000 per depositor till the 3rd Of April.
In an anticipatory move to meet huge withdrawals from its’ depositors after the lifting of the 13 day moratorium Rs 30,000 crore was kept in liquidity disclosed sources.
The bank had on March 14, 2020 reported an unprecedented loss of Rs 18,564 crore for the quarter which ended on March 14th this was a great downfall as compared to the profit of Rs 1,000 crore it posted in the quarter a year ago.
With a reconstruction plan in place, Yes Bank has received investments from 8 banks with the State Bank of India emerging as the largest stakeholder.