Yes Bank shares drop by 35% post RBI takeover

Shares in India’s Yes Bank dropped by a staggering 35%, after the central bank took control due to a serious deterioration in its financial position.

Yes Bank’s shares plummeted by 35% following the recent overtake by the Reserve Bank of India. The RBI has taken control of the 5th largest private lender in the country for a period of 30-days to come up with a revival plan.

The Yes Bank fallout, amid world markets reeling from uncertainty over a virus outbreak, hit Indian markets, taking the NSE Nifty 50 down as much as 3.9%, to its lowest since last September.

The RBI is now set to draw up a scheme for the reconstruction or amalgamation of the Yes Bank, in the coming days. This plan will be presented to the government for approval before the 30-day moratorium ends.

The RBI has also assured depositors that their interests will be fully protected and that there is no need to panic. As of now, withdrawals are capped at 50,000 Rupees per customer.

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