InvestorQ : Is it true that many depositors are also panicking and exiting Yes Bank and what should I do as a depositor in Yes Bank?
Dilmini Mercia made post

Is it true that many depositors are also panicking and exiting Yes Bank and what should I do as a depositor in Yes Bank?

Answer
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Dhwani Mehta answered.
7 months ago


Well there is something called deposit insurance which is now enhanced to Rs.5 lakhs per account but that is a different story. You are right there is some panic because when a former Yes Bank executive started selling his stake late last year, there were concerns that the resulting drop in share price would trigger a rush to withdraw deposits. This selling came in the aftermath of the PMC Bank crisis when frantic customers were lining up outside the bank branches and ATMs to withdraw money. There was also rampant speculation about broader contagion in the financial system. Yes Bank not only had a problem with bad loans but also with inadequate capital. Hence the risk of deposit flight is always there, but you don’t need to really panic for the same.