After Yes Bank crisis, Maharashtra govt shuns private sector banks

Against the backdrop of the Yes Bank crisis, the Maharashtra government has decided to only bank with public sector banks, officials said here on Friday.

Instructions to the effect have been issued by Chief Minister Uddhav Thackeray to the concerned departments.

Deputy Chief Minister Ajit Pawar added that the government does not have any accounts with any private sector banks and only banks with PSBs.

However, the Municipal Corporation of Greater Mumbai, certain other civic bodies and government departments are banking with private sector banks, but now these decisions are likely to be reviewed.

In December 2019, Mumbai Mayor Kishori Pednekar had said the civic body would consider shifting some of its accounts from a private sector bank to the safer option of government banks as a precautionary measure.

Similarly, the state government may rethink on its police department accounts with the Axis Bank in view of the Yes Bank imbroglio.