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Providing further support to private sector lender YES Bank, the RBI is understood to have extended the special liquidity window. According to sources close to the development, the facility has been extended for another three months as against the request for a one-year extension by the lender.
BusinessLine has sent an email query to YES Bank on the issue.
The RBI had extended an emergency line of credit of around ₹60,000 crore to YES Bank when it was under moratorium to help pay back depositors once it resumed normal operations.
“The bank had also been granted a short term special liquidity facility for 90 days (ending on June 16, 2020) from the RBI. The bank has written to RBI for an extension of the same for a year,” noted the auditor’s note, which is part of the fourth quarter results of the private sector lender.
Prashant Kumar, Managing Director and CEO, YES Bank, had told BusinessLine after the results that the gap between the loan book and the deposit book was taken care partially by the RBI support.
“We have said this gap cannot be built up so soon so we have requested them to extend the facility by one year. By that time, we should be in a position to build up our liabilities,” he had said.
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