The Reserve Bank of India has placed Yes Bank under moratorium. Yes Bank customers cannot make regular withdrawals of more than Rs. 50,000 a day till April 3, subject to a maximum of Rs.5 lakh.
Daily Current Affairs Quiz 2020
Why the Yes Bank fall into the crisis?
- Many borrowers started defaulting the bank’s gross non-performing asset (NPA) percentage that is the percentage of loans overdue for more than 90 days.
- The bad loans piled up, the bank did not make enough provisions in its profits. Its provisions were the lowest among comparable banks.
- The Customers withdrew large amounts, resulting in the credit-deposit ratio crossing 100% in 2018-19. That is, it lent more than it received.
