New Delhi, March 6 (IANS) As Yes Bank falls deeper into the crisis, its customers, especially large depositors, are a worried lot.
The names of big depositors whose money could be at risk are emerging and Nagpur University is among one such account holder with the troubled private lender.
It has been learnt that the varsity has about Rs 191 crore deposits with the private lender. But officials feel the money is safe and would not impact its functions.
An official said that the University is unlikely to be affected by it and that its financial transactions would not be impacted in coming days.
Among dozens of other key depositors, it has emerged that Jagannath Temple of Puri in Odisha has Rs 592 crore fixed deposits with Yes Bank. Given that Yes bank figures among large private sector banks, it has a sizeable client base from across the spectrum.
The bank had grown fast expanding its presence across the country by opening new branches and aggressively building its credit portfolio. But in the absence of rising bad debt and its inability to raise growth capital, the bank has now hit the wall.
Given its deteriorating financial health, the central bank on March 5 superseded its board and placed withdrawal restrictions capping withdrawals at Rs 50,000 per account till April 3.
Moody’s Investors Service on Friday said that RBI putting moratorium on Yes Bank is a credit negative for the private sector lender.
As collapse of Yes bank means further trouble for the whole financial system and the economy, the government is keen to salvage it. The RBI has drafted a revival plan for Yes Bank.
The government has nudged public sector lender SBI to lead a consortium to take control of the falling bank.