There's need for an insolvency framework for financial sector
One relevant clause is that if minimum Tier-1 capital falls below 6%, there is scope for the write-off of AT-1 bonds as these bonds are supposed to provide an additional cushion to capital adequacy
During the period of moratorium, the Yes Bank Ltd will not, without the permission in writing of the RBI, make payment to a depositor of a sum exceeding Rs 50,000 lying to his credit in any savings
Market participants will keenly watch the YES Bank developments especially after the Enforcement Directorate on Sunday arrested the bank's co-founder Rana Kapoor under money laundering charges
The health scare would taper-off in India also in a matter of a few weeks/months, based on the quantum of spurt in the initial stages and also depending upon the possible role of temperature.
Congress alleged the loans given by YES Bank rose 100 per cent in just two years after demonetisation from Rs 98,210 crore in March 2016 to Rs 2,03,534 crore in March 2018
From the impact of coronavirus on Vivad se Vishwas to reforms in the pension market, here are the top 10 business headlines of the day
Business Standard Opinion pieces for the day talk YES Bank's fallout, Data Protection Bill among other issues.
He said that it is a wrong method to assess a lender's health based on the ratio of deposit to m-cap (market capitalisation)
Regulators, bankers in a huddle to resolve issue
Weak compliance, poor governance and greed led to the bank's failure as it lent to borrowers who did not have the ability to repay
The most important post-mortem required after the YES Bank crisis is about flawed incentives of bankers and officials
Market players said domestic investors have been hit by a double whammy - the YES Bank crisis and the rising number of coronavirus cases
Grey market premiums have dropped to 10% after last week's market fall.
Majority of private bank stocks are down 10-33% YTD, indicating weaning conviction in the sector
Things could have been "nipped in the bud" by the RBI if it drew lessons from the bitter past episodes of banks 'covering up' their solvency
Restriction on withdrawal will hit the bank badly
The agency also named Doit Urban Ventures (India) Limited in its FIR that includes various Indian Penal Code sections and charges under Prevention and Corruption Act
The ED has already arrested 62-year-old Rana Kapoor in the matter under money-laundering charges
The sources refused to elaborate on the nature of the probe -- preliminary enquiry or an FIR -- or people arraigned, but affirmed that a formal investigation has begun