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YES Bank not to depend on external sources for funding: Prashant Kumar – Economic Times

NEW DELHI: Private sector lender YES Bank has emerged much stronger with the equity support coming in from the eight large lenders, newly appointed MD and CEO Prashant Kumar said on Tuesday.

Addressing a press conference, Kumar said the provision coverage ratio of the bank has been increased to 72.70 per cent from 43.10 per cent.

Kumar added that the entire stress book of the bank has also been taken into account.

“All the YES Bank branches are adequately funded,” he said, while adding that there is no need to depend on external sources for liquidity.

The bank will lift the moratorium by 6 pm from Wednesday. “All the ATMs are full of cash,” he added.

SBI Chairman Rajnish Kumar said the public lender won’t sell any shares of YES Bank for next 3 years.

Earlier in the day, shares of YES Bank spiked 58 per cent after Moody’s upgraded the company’s rating by a notch.

The rating agency upgraded the company’s ratings and also changed its outlook to positive. The scrip on Monday advanced by over 45 per cent after the announcement of a restructuring plan.

In a filing, YES Bank announced that the board of directors of the company has been approved for reconstitution, with Prashant Kumar, former Chief Financial Officer and Deputy Managing Director of State Bank of India, as its Chief Executive Officer and Managing Director.

The moratorium imposed by RBI on YES Bank, placing a withdrawal limit of Rs 50,000 on deposits, is to be lifted by 6 PM on March 18, 2020, which is much before the original date of April 3.