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Yes Bank crisis: UP Transport Corp to withdraw Rs 38 crore deposit

Of total Rs 423 crore in term deposit, the Corp had Rs 385 crore 3 months back

Virendra Singh Rawat  |  Lucknow 

Public transport
Public transport. Photo: Shutterstock

Amid the unfolding crisis, the Uttar Pradesh State Road Transport Corporation (UPSRTC) has initiated the process of withdrawing its term deposit of about Rs 38 crore with the private banker.

The corporation has written an official letter to the manager of Yes Bank’s local branch in Lucknow for getting its amount back with the applicable interest, UPSRTC managing director Raj Shekhar told Business Standard today.

In fact, the total amount invested by the UPSRTC with the over the past two years stood at nearly Rs 423 crore, of which Rs 385 crore had been withdrawn three months back and invested with other nationalised banks.

“We have already secured our term deposits with having the premature withdrawal facility. However, a term deposit of Rs 38 crore is still lying with the bank, since it does not have the premature facility,” he informed.

However, Shekhar said the Corporation was following up with the Yes Bank local branch, which held the term deposit, to secure this amount as well.

The role of the UPSRTC officials, who facilitated this investment in the Yes Bank, especially under the non-premature withdrawal facility clause, allegedly in connivance with the private brokerages or individuals could also come under the scanner in the days to come.

Meanwhile, the Reserve Bank of India (RBI) has already placed Yes Bank under one month moratorium and capped the monthly withdrawal limit for depositors to Rs 50,000 per account.

Public sector State Bank of India (SBI) has said it could pick up 49 per cent stake in the beleaguered new age bank. Addressing a news conference in Mumbai on Saturday, SBI chairman Rajnish Kumar said the SBI Board had given its nod to pick up 49 per cent equity in Yes Bank, which could mean that it could invest at least Rs 2,450 crore in the capital starved private banker.

Kumar said the SBI had set an upper cap of Rs 10,000 crore for investment in Yes Bank, while asserting there would be no merger between the two banking entities.

Meanwhile, Yes Bank cofounder Rana Kapoor, 62, was arrested by the Enforcement Directorate (ED) today in connection with a money-laundering case. Kapoor’s arrest followed interrogation by the ED sleuths in Mumbai and searches at his residences.

First Published: Sun, March 08 2020. 17:00 IST