Customers sensed all was not well with Yes Bank, withdrew Rs 18,110 cr deposits during Mar-Sep 2019
New Delhi, Mar 9 : Deposits at Yes Bank witnessed a steady decline during the March-September period last year as customers withdrew over Rs 18,100 crore, in a reflection of falling confidence in the bank.
Yes Bank, which has been put under a moratorium by the Reserve Bank till April 3, during which customers are not allowed to withdraw more than Rs 50,000, had deposits worth Rs 2,27,610 crore at the end of March 2019 (or end of 2018-19 fiscal).
However, it fell to Rs 2,25,902 crore by the end of the first quarter ended June of the current fiscal year (2019-20) and further to Rs 2,09,497 crore by the end of the second quarter ended September of FY20.
The difference in deposits between March 2019 to September 2019, reflects withdrawals to the tune of Rs 18,110 crore.
Data beyond September is not available as the cash-strapped bank had announced that there will be a delay in publishing its results for the third quarter.
A Delhi-based customer said that he sensed that all was not good with the private sector lender and withdrew his majority of deposits beforehand, leaving only with the minimum balance to keep the account active.
“We kept hearing that there was some problem with the bank, therefore we took out our money well before the withdrawal restriction was imposed on the bank,” he said on the condition of anonymity.
During the many months in the past, the bank battled hard to keep the rumour mongering at the bay, issuing statements that everything was fine and customers need not to worry about their deposits.
“Over the past few weeks, there has been a lot of unfounded speculation about Yes Bank’s board and management stability, asset portfolio, future growth prospects amongst other things.
“We strongly refute such speculations which we suspect is a deliberate and malicious attempt to create instability in the institution by undermining investor and client confidence. We have apprised the authorities of these developments. The financial position of Yes Bank is sound and stable and its liquidity and operating performance continue to be robust,” the bank said in a statement issued on July 8, 2019.
Another customer said he had limited deposits in Yes Bank and was not really worried much as the insurance amount has now been raised to Rs 5 lakh.
“Even as I could withdrew Rs 50,000 through cheque, I am not really worrying much as my account has limited cash. Moreover, the deposit insurance now covers up to Rs 5 lakh from Rs 1 lakh earlier, so there is not any such problem to me,” said Lalit Kumar, a Delhi based Yes Bank customer.
