Merger Rumors for India's Yes Bank Quelled
India’s Yes Bank will not be merged with the State Bank of India, the newly appointed administrator leading the rescue plan said on Monday.
Beleaguered Yes Bank is set to receive funds from the State Bank of India but they will not be merging, said Prashant Kumar, the administrator, according to a report in «Reuters».
«There is absolutely no question of a merger,» said Kumar. The Reserve Bank of India (RBI) on Thursday took control of Yes Bank because the lender failed to raise the capital it needs to stay above mandated regulatory requirements.
Moratorium Placed
The central bank has put Yes Bank under a 30-day moratorium, imposing limits on withdrawals to protect depositors and said it would work on a revival plan.
Kumar, former finance chief at SBI, assured depositors their money was safe and that the moratorium on Yes Bank might be lifted much before the deadline on April 3 and normal banking operations might resume as early as Friday.
Founder Arrested
On Monday, India's financial crime detectives have arrested the chief of the private Yes Bank, Rana Kapoor, over allegations of money laundering. Kapoor was produced in a court in the western city of Mumbai and remanded to police custody until 11 March, according to a «BBC» report.
The Enforcement Directorate has alleged the Yes Bank founder had refused to cooperate with the investigation. However, the founder denied this on Sunday. «I'm willing to cooperate day and night despite the fact that I haven't slept a wink,» he said.
