Letter to BS: There are larger issues at stake in beleaguered YES Bank

This is in reference to the news package on the YES Bank crisis (March 16). While it is heartening to see the SBI and a host of other banks lining up to infuse capital into the beleaguered YES Bank, there are larger issues at stake. There has been a huge flight of deposits, a process that will continue when the moratorium curbs are lifted. Non-performing assets (NPAs) are very high. If all NPAs are revealed, it may be mammoth. The bank is in serious breach of all RBI norms regarding capital adequacy and liquidity among others. The question is af­ter all the capital infusion, will the bank inspire sufficient confide­nce among customers? After so many criminal cases and en­quires going on, will anyone want to do business with the bank? While the government has done well to try to get the bank back on its feet, will it survive after its reputation has been so badly damaged? This is the moot question everyone has to ponder over.

Arun Pasricha, New Delhi Letters can be mailed, faxed or e-mailed to: The Editor, Business Standard

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