InvestorQ : What does Yes Bank repaying Rs.35,000 crore of loan to RBI mean for the stock?
vaishnavi mhatre made post

What does Yes Bank repaying Rs.35,000 crore of loan to RBI mean for the stock?

Answer
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vidhya Laxmi answered.
2 months ago


It looks like Yes Bank is finally getting its house in order under the leadership of Prashant Kumar. Recently, Yes Bank confirmed that it repaid Rs.35,000 crore out of the Rs.50,000 crore extended by the RBI as special liquidity facility or SLF during the March crisis.

It may be recollected that in March Yes Bank was placed under moratorium after it was on the brink of default due to faulty lending policies. This facility was extended by RBI just after Yes Bank hurtled into a crisis in March this year. Now only Rs.15,000 crore remains to be repaid.

Yes Bank must have got a major relief from the FPO issue where it raised close to Rs.15,000 crore. More importantly, this move by Yes Bank will restore confidence back in the equity investors and also in the lenders to the bank after the fiasco of last few years.

The bank had been pushed to a corner due to the faulty and dubious lending practices propounded by Rana Kapoor, founder of Yes Bank. However, timely intervention by the RBI and the support of SBI ensured that Yes Bank survived to fight another day.