Rescue plan in place, Yes Bank gears up to face new challenges
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Mumbai, March 16 -- State Bank of India (SBI), six private sector banks, and a mortgage lender will invest a combined Rs.10,000 crore to rescue Yes Bank Ltd, allowing the troubled lender to shore up its capital buffers after they dropped below the regulatory requirement.
While the funds infusion by some of India's biggest financial institutions does signal a show of confidence, the real challenge will be to ensure that Yes Bank's depositors don't abandon it.
"The ability of Yes Bank to retain its deposit franchise will be key to its revival. So, the next one week will be crucial to see if the bank is able to stabilize its depositor base. That will decide whether the bank is able to focus on its near-term revival plans," said Karthik Sri...
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