My take on state of affairs of yes bank

State of affairs at Yes Bank and Govt’s efforts to save the bank at the cost of shareholders of SBI and Policy holders of LIC brings to focus some issues.Firstly why such efforts were not made to save the PMC Bank.Why the interests of deposit holders of PMC were not protected in a similar fashion.Whether it is an indicator that the deposits of some extremely influential people are stuck in Yes Bank ,so the efforts to bail out.SBI is also a commercial organisation with numerous problems of it’s own.It has at its disposal existing and potential NPAs of large magnitude.Why the interests of the shareholders of SBI be sacrificed to save Yes Bank.In case the govt is interested in such rescue operations it may create a fund and use money therefrom rather than using money of other banks and institutions and exposing them to risk in this vulnerable market.Someone needs to go to court and file a PIL to protect the interests of the shareholders of SBI and policy holders of LIC.Infact in case of LIC interests of policy holders have been jeopardised time and again to rescue one or the other organisation and at times to ensure that markets do not fall below a point.There is an urgent need for a white paper on LIC operations in last decade .

Related Topic:
Compilation for Statutory Audit of Bank Branches (2019-20)

For the last couple of years trouble was brewing at Yes Bank and it was known to everyone.Why Rana Kapoor was allowed an exit without fixing his accountability.Raiding him today and charging him with money laundering reflects poorly on our banking regulator and enforcement agencies.Why it was not known to our enforcement agencies that he had made investments in safe heavens if such news are true.There is a need to make public the large advances that Yes Bank made in last decade and their status as of today.His conduct at Assocham is known to everyone.

It also brings to focus the role of Board members particularly Risk Management Committee members,Audit Committee ,Auditors both internal as well as external,RBI inspectors,RBI nominees on Board if any,Rating Agencies and so on.
Time is ripe that none of them gets away with this kind of situation.The Govt needs to understand that it is hurting the image of our financial sector and its regulation at international level.And this is what we can ill afford.