YES Bank Crisis: Why the private lender's deposits declined last year

Well, as YES Bank experiences turmoil, we are compelled to tell you how the deposits of the private lender saw a steady decline in the first half of the Financial Year 2019-20. This is because the customers withdrew over Rs 18,100 crore that reflected in the banks deposits, reported The News Minute.

YES Bank had deposits worth Rs 2,27,610 crore as of March 2019 but ot fell to Rs 2,25,902 crore by the end of the quarter 1 ended June. Sunsequently, it fell to Rs 2,09,497 by the quarter ended September.

The total difference amounts to Rs 18,110 crore.

However, data beyond September is not avaiable has the bank had earlier announced that there will be a delay in publishing the earnings results for the quarter ended December.

Speaking to The News Minute, a Delhi -based customer said that he was aware that the bank was going through a tough time and had, hence, withdrew majority of deposits and left only minimum balance in the account to keep it active.

The bank had earlier issued statements stating that everything was fine with the bank and their customers need not worry about their deposits as it is safe with the bank. However, the customers were compelled to withdraw their deposits to be on a safer side.

Earlier, there was a scramble to withdraw money from the crisis-hit Yes Bank branches and ATMs across the country on Friday.

Such is the trust deficit that spooked customers had made a beeline for ATMs on Thursday evening itself, after the RBI announced the Rs 50,000 cap on withdrawals.

In no time, the ATMs were bone dry, leaving the distressed customers exasperated, especially in the suburbs and residential areas.

Besides, customers said certain UPI transactions, which are on the Yes Bank PSP, were not going through; in fact, all types of accounts were inaccessible via net banking, and many fintech players are hit.

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