Money & Banking

RBI extends ‘special liquidity window’ for YES Bank by another three months

K Ram Kumar/ Surabhi Mumbai | Updated on June 23, 2020

Yes Bank resumed its full banking services from Wednesday evening.   -  PTI

In further support to private sector lender YES Bank, the Reserve Bank of India is understood to have extended the special liquidity window.

According to sources close to the development, the facility has been extended for another three month period, against the request by the lender for a one-year extension.

The facility was to get over on June 16. YES Bank did not respond to an email query sent by BusinessLine. 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 was also granted a short-term special liquidity facility for 90 days (ending on June 16) from the RBI. The bank has written to the RBI for an extension of the same for a year,” said 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 loan book and the deposit book was taken care of 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.

YES Bank’s deposit base had halved to ₹1,05,364 crore as on March 31, 2020, from ₹2,27,610 crore a year ago. Its CET 1 ratio and the Tier 1 capital ratio was also below regulatory requirements as on March 31 at 6.3 per cent and 6.5 per cent, respectively.

On Wednesday, its scrip closed 0.54 per cent lower at ₹27.60 apiece on the BSE.

Published on June 23, 2020

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