According to the official data, shares in India’s plunged 60% and confused depositors ran to withdraw their funds due to the current situation.
The Reserve Bank of India (RBI) has been struggling with a steady decline in the financial position of the country. Shares of Yes Bank plunged more than 1 billion of the market value, due to which a huge number of customers are rushing towards the nearby branches to withdraw their money.
Customers are complaining about the social media about Yes Bank’s online system preventing fund transfers and the compromised functionality of payment applications.
A building contractor Chintan Patel said, “I will struggle to pay salaries to my staff, or pay any of my vendors, because of the restrictions.”
Sandip Sabharwal, a Mumbai-based fund manager remarked, “Effectively, Yes Bank should have no equity value left, ideally, trading should be suspended till formal restructuring is announced.”
The Reserve Bank of India (RBI) is trying to create a retrieval plan for the current crises faced by Yes Bank. RBI Governor Shaktikanta Das said, “Let me assure you that the Indian banking sector continues to be sound and safe, we stand committed to maintaining stability in the financial and banking sector.”
“We believe forced bailout investors will likely want the bank to be acquired at a near-zero value to account for risks associated with the stress book and likely loss of deposits,” JPMorgan analyst Saurabh Kumar commented.
JPMorgan cut its price target on Yes Bank to 1 rupee, from 55 rupees a share.