Money & Banking

Yes Bank impact on RBL Bank: Retail deposits safe, loses 3% deposits in last one week

Our Bureau Mumbai | Updated on March 17, 2020 Published on March 17, 2020

Says bank strong, highly liquid

Private sector lender RBL Bank on Tuesday said that there have been some withdrawals from its institutional depositors and a few state government organisations.

These withdrawals constitute about three per cent of its total deposits in the last one week.

Stressing that it is well capitalised and has strong fundamentals, the bank said the issue of withdrawal is being addressed by it on a one-on-one basis with the State Governments and also at the Industry levels by the Reserve Bank of India.

The bank’s total deposits stood at Rs 62,907.2 crore as on December 31, 2019.

“In spite of this, we remain highly liquid with significant retail deposits, institutional lines, refinance, and surplus liquid assets,” it said in a statement on Tuesday.

The bank’s comments come amidst concerns about the safety of private and mid-sized private banks in the aftermath of the crisis at Yes Bank.

Some State governments such as Maharashtra have issued instructions to their departments and civic bodies advising them not to transact with private banks after the Yes Bank crisis while some other states have also been discussing such a move.

To address these concerns, the RBI has already written to States assuring them about the safety of deposits in private sector banks. It is also understood to be actively monitoring deposit withdrawals and liquidity position at private sector banks.

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Published on March 17, 2020
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