People stand outside a Yes Bank ATM on Friday
People stand outside a Yes Bank ATM on Friday
BL Soni - FPJ Photo

Mumbaii: Yes Bank CEO-designate Prashant Kumar on Tuesday ruled out a forensic audit of the Yes Bank's book. This revelation comes a day after RBI governor Shaktikanta Das didn't give a clear response to the question on why RBI imposed moratorium and not prompt corrective action (PCA).

"There is absolutely no need for a forensic audit on the books of Yes Bank as what we have declared in the Q3 results as doubtful assets are on most conservative (basis)," said Kumar.

"If at all we finally book an additional Rs 8,500 crore in fresh slippages, our higher provisions at 72% will make sure that the credit cost comes down in absolute terms," Kumar -- who was flanked by Rajnish Kumar, the chairman of SBI which is the largest shareholder of Yes Bank with close to 43% ownership, and Ashutosh Khajuria of Federal Bank which has invested Rs 300 crore into the bank's rescue -- said.

Just recently commenting on PCA and moratorium, Das had said, "We took a larger view of things, and we cannot apply various measures in a very mechanical manner." The central bank had revoked PCA on 11 public sector banks but in case of Yes Bank it imposed moratorium.

In case of Yes Bank, Kumar also said there is absolutely no worry on the liquidity front and a complete operational normalcy will be restored from 6 pm on Wednesday.

The retired SBI banker, who will formally take over as the chief executive and managing director on March 26 as per the rescue plan authored by the RBI, further said he expects Rs 8,500-10,000 crore recoveries in the March quarter as the bank has already made higher provisions of over 72% from 42% and that he does not expect more than the already announced 5% more slippages.

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Free Press Journal