Yes Bank Crisis: Steps Taken by Govt Is Troublesome Not Relieving

The Quint’s Editorial Director Sanjay Pugalia decodes and analyses what led to the YES crisis.

The Quint’s Editorial Director Sanjay Pugalia decodes the YES Bank crisis.

(Photo: The Quint)

Video Editor: Purnendu Pritam and Mohd. Irshad Alam

The sensational collapse and rescue of YES Bank is still on. But the question that arises in our minds is – could the government have found a better way to save YES Bank?

The decision on ban (moratorium) has been taken by the RBI but it cannot be decided without the consent of the government

The fiasco has led to an increase in mistrust among the public about the banking sector. This is the reason that SBI CFO Prashant Kumar has clarified that the moratorium can be withdrawn soon.

We might not have to wait for a month. It can be withdrawn this week itself. Now that he understands the panic that has spread, he wants to withdraw it at the soonest.

The other problem is that of perpetual bond or AT1 bond. Indusind bank which was trying to introduce the AT1 bonds of Rs 10,000 crore cancelled the decision.

The dip in the share market on Monday, 9 March was mostly due to global reasons.

The YES Bank crisis also had a role to play in the dip. But the irony here is that YES Bank shares rose by 30%. Many believe that now that SBI is in the picture, there is nothing to worry about. Whatever crisis had to happen has happened, so this would be a good time to buy shares because the value is only going to increase.