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My nephew has account in YES Bank; asked him not to worry: SBI chief Rajnish Kumar

"SBI is a national institution of India. We're supporting the government. We believe the survival of bank is a must. The failure of a bank has huge consequences for financial system. SBI is standing behind it. It'll bring stability," says SBI Chairman

twitter-logoBusinessToday.In | March 7, 2020 | Updated 18:46 IST
My nephew has account in YES Bank; asked him not to worry: SBI chief Rajnish Kumar
SBI Chairman Rajnish Kumar

State Bank of India (SBI) Chairman Rajnish Kumar, while clearing doubts about safety of depositors money in YES Bank, said that he told his nephew, who has an account with the public lender, "not to worry" and that depositors' money was not at risk at all. He was speaking at his first press conference after the Reserve Bank of India (RBI) issued a one-month moratorium for the YES Bank.

Kumar said, "Yesterday, when all this news was there, I received the first call from my nephew... he has an account with the YES Bank... I have asked him not to worry".

He added, "SBI is a national institution of India. We're supporting the government. We believe the survival of bank is a must. The failure of a bank has huge consequences for financial system. SBI is standing behind it. It'll bring stability,"

The RBI took over from the YES Bank's board for 30 days and put limits on withdrawals to protect depositors.

In response to the Enforcement Directorate (ED) investigations against the private lender's founder and former managing director and ex-CEO Rana Kapoor, the SBI Chairman said that it was necessary to distinguish between the people and the enterprise.

"Let's distinguish between person and enterprise. YES Bank is an entity, Rana Kapoor is an individual. If an individual has done wrong, he would have to pay a price," said Kumar.

The SBI chief told that the rescue of YES Bank was necessary and restructuring plan for the private lender had been received by the state-owned lender. He added that SBI's total initial quantum of investment in YES Bank would be Rs 2,450 crore.

The RBI on Friday revealed a reconstructing scheme for the revival of the troubled bank. It said SBI had expressed interest to invest in the public lender and its reconstruction scheme. SBI would hold 49 per cent shareholding post the infusion.

(Edited by Vivek Dubey)

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Also Read: YES Bank crisis: How SBI executed a perfect 'rescue plan'

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