Chidambaram Taunts Centre Over Yes Bank Crisis

Citing examples of crisis in PMC Bank and Yes Bank, former Finance Minister and senior Congress leader P Chidambaram on Friday slammed the BJP-led central government and asked whether there is a third bank in the line.

“BJP has been in power for six years. Their ability to govern and regulate financial institutions stands exposed. First, it was PMC Bank. Now it is YES Bank. Is the government concerned at all? Can it shirk its responsibility? Is there a third bank in the line?” Chidambaram tweeted.

“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. When overall bank credit during the above period grew by about 10 per cent, how did Yes Bank’s loan book grow by about 35 per cent?” he added.

Chidambaram later went on to question Finance Minister Nirmala Sitharaman and tweeted, “I understand Finance Minister has made a statement blaming the UPA. That’s normal for a government living in ignorance. Does the Finance Minister know the numbers that I have tweeted? If she does, will she please explain how the loan book jumped in five years from Rs 55,633 crore to Rs 2,41,499 crore? Who knows, FM may blame the UPA for the miraculous jump between 2014 and 2019!”

Chidambaram further asked why the State Bank of India (SBI) should invest in Yes Bank?

“Is it correct that SBI is ‘exploring investment opportunity’ in YES Bank? Why should SBI invest in YES Bank? 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,” he tweeted.

After restrictions by Reserve Bank of India (RBI) on Yes Bank created a panic situation among its customers, Sitharaman earlier today assured that money of every depositor is safe. She asserted that the steps have been taken in the interest of depositors, bank and the economy.

“I am in continuous interaction with RBI. RBI has assured that they will find a quick resolution. I want to also assure every depositor that their money shall be safe. Steps that are taken now are in the interest of depositors, bank and the economy. There are doubts among depositors but I assure their money is safe,” Sitharaman told reporters here.

“Reserve Bank has taken cognizance of the matter. RBI has gone over and over again to find out an amicable resolution and that has been over the past couple of months. So, it’s not as if it comes suddenly now. RBI Governor has assured me that the matter will be resolved soon,” she said.

The minister continued: “We have been monitoring the situation. Now, RBI has come up with a plan and a resolution will be found at the earliest. I along with RBI was monitoring the situation in the past couple of months and therefore we have a course which is in everybody’s interest.”

On Thursday, the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank’s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.

During the period of moratorium, the Yes Bank Ltd will not, without the permission in writing of the Reserve Bank of India, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings, current or any other deposit account. (ANI)

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