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Yes Bank pays entire Rs 50,000 crore dues to RBI way ahead of due date

Addressing the bank's shareholders at its annual general meeting (AGM) held virtually on Thursday, Sunil Mehta said that the entire payment was well ahead of the due date as the private sector lender received strong customer inflows

twitter-logoBusinessToday.In | September 11, 2020 | Updated 11:56 IST
Yes Bank pays entire Rs 50,000 crore dues to RBI way ahead of due date
Private sector lender Yes Bank borrowed the money amid the crisis faced by it earlier this year

Yes Bank has fully repaid Rs 50,000 crore to the Reserve Bank of India (RBI) it borrowed under the SLF (special liquidity facility) window. The private sector lender took the money amid the crisis faced earlier this year.

Addressing the bank's shareholders at its annual general meeting (AGM) held virtually on Thursday, chairman Sunil Mehta said that the entire payment was made well ahead of the due date as the private sector lender received strong customer inflows.

He also cleared the air regarding Yes Bank's merger with the State Bank of India (SBI), clarifying that there were no such plans.

Also Read: Yes Bank to raise ESOP pool to 225 million; fixes MD-CEO's remuneration at Rs 2.84 cr

Mehta further stated that FY21 will be a year of transition for the bank, which has just come out of an unprecedented Rs 10,000 crore bailout led by SBI after setbacks received under the founding team.

The government and RBI had replaced the entire board of the lender in March this year and also stopped depositors from accessing their funds for a few days.

A new management was installed, restrictions were lifted and it also completed a Rs 15,000-crore capital raise during the pandemic.

"I am pleased to report that the bank has fully repaid SLF of Rs 50,000 crore to the RBI on September 8, well before the due date," Mehta told shareholders.

"FY 2020-21 will be a year of transition, as we battle the health and economic impact of COVID-19 and simultaneously re-invent ourselves as a nation," he asserted.

Strong governance is one of the three key pillars of sustainable growth the bank is working on, Mehta said.

Also Read: CRISIL, Ind-Ra upgrade Yes Bank's ratings on improvement in funding, liquidity profile

There were allegations of corporate governance lapses and other practices at Yes Bank which led to financial losses.

"We must continue to strengthen and augment our oversight along with governance and risk management practices," Mehta said, acknowledging that strong corporate governance is key to the success of an institution.

The bank's new board has put in place a framework to ensure risks are identified, evaluated, and addressed appropriately, he said, making it clear that much of the work undertaken is not only to meet regulatory requirements but to make the lender stronger, agile and efficient."The other key pillars for sustainable growth are driving operational excellence through digitisation, strong governance, and risk frameworks," he said.

Also Read: Prashant Kumar to get Rs 2.85 crore as MD, CEO of Yes Bank

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