Yes Bank News : Yes Bank repays entire Rs 50,000 crore special liquidity facility dues to RBI

Yes Bank News: The private lender Yes Bank has fully repaid Rs 50,000 crore to the Reserve Bank of India, it borrowed under the Special Liquidity Facility (SLF). In an address to shareholders at the lender's annual general meeting, Sunil Mehta said that the full payment was made much before the due date as the bank received strong customer liquidity inflows. Mehta also clarified that there are no plans to merge with the largest shareholder of the State Bank of India.

"I am pleased to inform you that the bank has fully repaid SLF of Rs. 50,000 cores to the Reserve Bank of India on September 8, 2020 well before the due date,” Mehta said.

Yes bank news

The private lender had borrowed money from the Reserve Bank of India (RBI) in anticipation of strong deposit outflows after the regulator decided to lift the moratorium placed on the bank as per Yes Bank News. Since then, the bank has also raised approximately Rs 15,000 crore through a further public offering (FPO).  After raising the fund, the bank's Common Equity Tier 1 (CET) 1 index doubled to 13.4% from 6.6% at the end of June 2020, bringing its capitalization largely in line with that of their private-sector peers.

"The significantly improved solvency ratio increases the bank's resilience to face potential asset quality risks arising from the impact of the economic slowdown and COVID-19 related disruptions to the Indian economy," Mehta said. "We are closely monitoring the stress on our loan portfolio on account of legacy issues, the current macroeconomic and Covid-19 situation." - Yes Bank News 

Though Mehta was cautious, adding that given the uncertainty and full economic impact of COVID-19 in key sectors, it was difficult to fully determine the short- and medium-term implications of the moratorium on the bank's books.

Also Read: Zerodha’s Rainmatter invests in online learning startup QShala

  • Share

Follow on Insta

Subscribe now