Taxpayers will be 'big casualty' if govt bails out Yes Bank: Macquarie

Over the past few months, YES Bank has struggled to raise capital - nearly $2 billion - it desperately needs to stay above regulatory requirements

Taxpayers are the biggest casualty in the government-approved bailout plan of YES Bank by a State Bank of India (SBI)-led consortium, says the latest report by global research and brokerage firm Macquarie. Any bail out of a private sector entity by public sector undertakings (PSUs) / Government / taxpayers indeed creates a moral hazard, the brokerage firm said.

“The fact that government is considering such a bail out proposal clearly shows the risk inherent in investing in PSU banks/companies who continue to be subjected to the vagaries and compulsions of the government. The bigger casualty is taxpayers as their money