YES, Bank should have become one of the best private banks in the country till now because investors liked the company. Customers were always happy with the rules, regulations, and returns until the CEO, Rana Kapoor had to leave his position because RBI didn’t allow it.
Gradually, the stock prices of the company started tumbling and this is the reason, Yes Bank had to lose almost 22k crores within a single day. There are also certain reports which say that the bank had some bad loans underreported. A few months back, the company also decided to sell a stake close to 2000 crores and it might need more money in the future. Therefore, selling stocks of the company isn’t a good option as investors and customers are waiting outside to get better financial situations.
What decision has been taken by the Central Government with regards to YES Bank Collapse?
It’s been a long time since the shares of Yes Bank are falling down day by day. The trust of customers at the organization was losing and that’s why the central government had to help YES Bank to get better at the stock market and investments. To gain the trust of investors of the bank, the RBI and central government decided to appoint CFO and ex-DMD of SBI as the person who will handle the organization for one month.
How will YES Bank manage in the next thirty days?
The CFO of SBI will take some strong steps to overcome the financial issues going on in the YES Bank organization. The best thing is that the decision won’t be taken by looking only at the side of the organization but it will also be beneficial for the customers and investors connected to the bank. Although there will be withdrawal limit set up for the existing customers.
Why was it necessary to supersede the Board of directors?
When the general public is worrying about their deposits in a bank, it is the responsibility of the central government to take a tough decision. The government has taken a decision with RBI to make sure that the depositors are able to keep their faith in the Bank.
The customers of the bank will be able to get rid of worries because everything will be handled by the CFO and ex-DMD of SBI. The customers of the bank were started having mistrust on the organization and this wouldn’t have been good for the economy of the bank and country. Only for the next thirty days, the responsibilities will be handled by Prashant Kumar who has more experience in the banking field and has worked at a better organization like SBI.
Now, for the next thirty days, SBI CFO, Prashant Kumar will handle the deteriorating situations of the bank. By choosing the right steps and giving appropriate directions to the employees, he would make sure that the trust of customers doesn’t go anywhere in the near future.
Pros of SBI CFO taking over the responsibility
- Easier to gain the trust of customers
- Investors will be relieved
- Experience of CFO will go a good work for the stocks
- Appropriate financial decisions will be taken faster
As of now, the decision taken by the central government and RBI is totally justified and it will definitely provide some benefits to the bank and its customers. The bank is getting a helping hand from a reputed banking organization. So, the investors can cross their fingers and wait for the fortune which is about to arrive.