Account holders’ money stuck, ED’s interrogation of YES Bank founder in Mumbai continues

Account holders’ money stuck, ED’s interrogation of YES Bank founder in Mumbai continues

Even if Rana is now saying what is happening, he does not have an idea. Many evidence is coming to know about the ED’s arrival.

Started in the year 2004, is going through a crisis. Meanwhile, the Enforcement Directorate has begun to tighten the scrutiny of investigating agencies over Rana Kapoor, the bank’s founder and former CEO of the bank who had boarded the board before the crisis unfolded. A look out notice was issued against him on Friday. The ED team also carried out the operation of raids on several of his bases. After this, Rana Kapoor reached ED office in Mumbai on Saturday. The ED team is questioning Rana Kapoor.

Investigation agency ED tightens Yes Bank founder Rana Kapoor

Rana Kapoor reaches ED office in Mumbai on Saturday, being questioned

Yes Bank had informed the stock market in November 2019 that Rana had fully exited the bank’s board, but this crisis did not arise overnight. Even if Rana is now saying what is happening, he does not have an idea. But in the raid on his residence, many evidence is coming to know about the ED’s arrival. In such a manner as the investigation is going on, Rana’s problems are believed to increase.

Moody’s reduced rating

After the ban of the Reserve Bank, the rating agencies also gave a shock to Yes Bank. Moody’s issued a statement, lowering the rating of the bank, calling RBI’s ban negative. At the same time, ICRA also scissored the ratings on Yes Bank’s Tier-II and Tier-I bonds. It is worth noting that in view of the cash crisis of the bank, RBI has given permission to withdraw only 50 thousand rupees by April 3. However, it has also been clarified that customers can withdraw up to Rs 5 lakh in emergency.

Yes drowned due to loan

In the midst of the discussion about how Yes, which had been growing rapidly, was caught in such a deep crisis, it is also being believed that bad loans have a big role to play behind this predicament of the bank. The bank has given loans to companies such as L&FS, Jet Airways, Cox & Kings, CG Power, Dewan Housing and Cafe Coffee Day, whose record of financial transactions was not clear. The NPAs of all these companies reached record levels.

Know what is article 370 and 35A?

Significantly, the country’s largest bank SBI has shown interest in investing in Yes Bank. On the other hand, the government has assured the customers of Yes Bank that their money will not be allowed to sink. Finance Minister Nirmala Sitharaman has said that she herself is in touch with RBI. At the same time, the customers of the bank are restless despite the assurances of the government.

Recommended For You

About the Author: Ahead Daily

Leave a Reply

Your email address will not be published. Required fields are marked *