A Reserve Bank of India-backed proposal to rescue embattled Yes Bank Ltd has been approved and withdrawal limits will be lifted, officials said, as India’s fourth-largest private lender posted a big quarterly loss.
Yes Bank was struggling with bad loans and on the brink of collapse when the central bank seized control of the lender on March 5 and imposed withdrawal limits for customers.
Eight banks — led by the country’s largest lender, the State Bank of India (SBI) — committed to investing in the plan, which has been approved by the Indian government, Yes Bank said in a regulatory filing on Saturday.
The withdrawal limits for customers would be lifted tomorrow, it said.
“We are an integral part of the financial system and we must support other banks that have gone into difficulty,” Deepak Parekh, chairman of the Housing Development Finance Corp Group, one of the lenders investing in Yes Bank, told the Times of India on Sunday.
“The difficulty may be due to any reason, but there are a large number of depositors, borrowers and employees. We are reasonably confident that the bank will be revived,” Parekh said.
SBI had announced on Thursday that it would invest 72.50 billion rupees (US$977 million) in the troubled lender.
The announcement came as Yes Bank on Saturday reported a net loss of 185.6 billion rupees in the three months to Dec. 31 last year, compared with a profit of 10.2 billion rupees in the previous corresponding period.
Deposits totaled 1.37 trillion rupees as of March 5 — when Indian authorities took control of the bank — down 17 percent from the start of the year, Yes Bank said in a statement on Saturday.
That followed a 26 percent year-on-year slide in the three months through December last year.
Yes Bank’s provisions climbed to 247.7 billion rupees in the quarter ended Dec. 31 from 13.36 billion rupees in the previous three-month period and only 5.5 billion rupees a year earlier, Yes Bank said.
Its gross bad-loan ratio as a share of total loans was 18.9 percent in the December quarter, up from 2.1 percent a year earlier.
The bank on Thursday is to be removed from several NIFTY indices, the National Stock Exchange of India Ltd said in a statement yesterday.
India’s financial system had been hit by liquidity concerns more than a year after the near-collapse of Infrastructure Leasing & Financial Services Ltd, one of the nation’s biggest “shadow banks” — finance houses responsible for significant consumer lending.
A resulting reluctance of banks to lend money has exacerbated the woes of Asia’s third-biggest economy, with growth remaining sluggish.
Additional reporting by Bloomberg
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI