SBI Says Yes to Yes Bank
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c m y k c m y k THE LARGEST CIRCULATED ENGLISH DAILY IN SOUTH INDIA deccanchronicle.com HYDERABAD I SATURDAY I 7 MARCH 2020 Vol. 83 No. 66 Established 1938 | 32 PAGES | `6.00 SBI says yes to Yes Bank To buy 49% stake; withdrawal cap to stay for 30 days; banks face Fitch downgrade FALAKNAAZ SYED & MADHUSUDAN SAHOO Yes Bank crisis MUMBAI/NEW DELHI, MARCH 6 At the end of a chaotic trips PhonePe day that saw the stock market crash and govern- ment, depositors, and investors wrung hands in for many hours despair and spent tense hours, hope emerged that the crisis triggered by the Customers enraged overnight moratorium on Yes Bank would have a over payment failure quick resolution that may come within a month. ADITYA CHUNDURU | DC A draft scheme announ- HYDERABAD, MARCH 6 ced on Friday by the Reserve Bank of India for To the chagrin of the city’s roadside ven- a revival of the cash- dors and retail shop owners, customers strapped private lender could not use PhonePe, the digital pay- said the country’s largest ments application, for much of Friday. lender State Bank of India Not a single transaction went through. In (SBI) shall pick up a 49 December, the company claimed over per cent stake in the 18.5 crore unique users. The story was reconstituted Yes Bank same everywhere. for about `2,450 crore and Few were aware that the Yes Bank cri- stay invested for at least sis was behind this. Until now, PhonePe three years. only used Yes Bank’s application pro- RBI governor Shaktika- gramme interface (API) to facilitate digi- nta Das said the 30-day tal payments. With no Yes Bank to sup- moratorium imposed on port it, Walmart-owned PhonePe was Yes Bank Thursday night forced to suspend all services. is an “outer limit”, hint- Raju, a pan shop vendor in Secunder- ing that the restrictions abad, was bewildered when a customer placed on the bank would tried using PhonePe in the morning. “He be lifted before that. He kept trying but the transaction never reiterated that the inter- went through,” Raju said. “I thought it ests of depositors will be was one-off, but not a single PhonePe “fully protected”. transaction has worked.” Finance minister Like many other retailers, he tied up Nirmala Sitharaman also only with PhonePe, shunning competitor said deposits and liabili- PayTM. He was clueless about why ties of all depositors will PhonePe was down and told customers be honoured and jobs and throughout the day that “the server is salaries of Yes Bank staff down”. PhonePe’s situation caused out- will be protected for at rage and confusion on social media. least one year. People criticised the company for dep- “We are working to pro- ending on the back-end support of only tect the interests of the one bank. Sameer Nigam, the CEO of depositors and also those PhonePe, tried soothing their nerves. In who invested in Yes a tweet, he “regretted the long outage” Bank. Our immediate pri- and blamed it entirely on Yes Bank. By ority is to ensure that Yes late evening, it made alternate arrange- Bank’s customers are ments and got its debit, credit card and able to withdraw money Wallet services. within the stipulated Account holders wait outside the Fort branch of Yes Bank in Mumbai on cap,” the minister said. Friday to withdraw money. — PTI ■ Page 2: PhonePe’s UPI still not working She said the govern- ment has asked the Reserve Bank to look into what went wrong at Yes Investors lose 3.2 lakh cr in Bank and fix individual ` responsibilities. Global rating agency Fitch said that the takeo- Yes Bank-led market crash ver of Yes Bank casts light on governance risks in India’s banking sector RAVI RANJAN PRASAD & points intra-day and Nifty- failing dented sentiments and assigned a negative ASHWIN J. PUNNEN | DC 50 sank well below 11,000 among domestic investors outlook to India’s bank- MUMBAI, MARCH 6 mark to 10,827. Recovering and lead to heavy selling in ing sector and lowered the ground partially later the financial sector stocks. the sector’s operating A sharp fall in equity mar- in the day, the Sensex Yes Bank shares fell 85 per environment rating from kets across the world due closed 893.99 per cent down cent intra-day to a low of ‘bbb-’ to ‘bb+’ in 2019. to the rapid spread of coro- and the Nifty-50 closed `5.55 on the BSE but ended “The banking sector navirus cases globally and 279.55 points low. the day 56.04 per cent down could suffer further if the RBI curbs on withdrawals Tracking the plunge in at `16.20. The fiasco has government’s efforts to from Yes Bank led to a the indices, the market also hit mutual fund debt tackle problems in the panic-selling in Indian capitalisation of the BSE- as the latter’s exposure to bank fail,” Fitch said. market by foreign listed companies dropped the cash-strapped bank at investors. by `3,28,684.5 crore. `3,345 crore. ■ Page 10: Obligations, The Sensex hit a low of Overnight action by the rights to stay unchanged 37,011.09 as it fell 1459.52 RBI to save Yes Bank from ■ Full coverage on Page 10 4 PEOPLE WITH Another Delhiite joins virus TRAVEL HISTORY infected list, total rises to 31 SEEK VIRUS TEST DC CORRESPONDENTS DC CORRESPONDENT medical examination. If and the Lotus Makeup WARANGAL/ HYDERABAD, NEW DELHI, MARCH 6 any of them are found sym- India Fashion Week have MARCH 6 ptomatic (for coronavirus) been postponed. The CISF One more suspect tested then samples will be postponed its anniversary Four cases of suspected positive for Novel taken,” an officer said. celebrations at Ghaziabad coronavirus have come to Coronavirus (Covid-19) on Already a group of 16 on March 13, while the Gandhi Hospital from the Friday, taking the overall Italians is undergoing CRPF deferred its March 8 districts. One from Wara- number of cases in India to treatment in India after event. ngal, one from Jangaon 31. The patient has a histo- having tested positive for Wings India 2020, a major and two from Khammam ry of travelling to Thailand Covid-19. An Irishman sus- event of the civil aviation have self-reported after and Malaysia. According to pected of the Covid-19 sector from March 12-15 in cough and cold. the Union health ministry, infection fled from a Hyderabad, will be truncat- They had a travel histo- the patient is in quarantine Cuttack hospital but was ed and large public gather- ry to the Covid 19 affected and is stable. traced to a Bhubaneswar ings would be avoided. In Dubai, Italy and Germa- Meanwhile, an additional hotel where he is in isola- view of travel restrictions, ny. They reported to the 13-member group of tion with another person only local representatives local hospital and doctors tourists from Italy have that he had come into con- of companies will attend. found that their travel been quarantined at a hotel tact with, officials said. In The BSF is going ahead history required further in Amritsar. They have accordance with the proto- with its daily Retreat Cere- investigation and asked been asked to not leave till col, they will be in manda- mony at the Attari border them to give samples at their medical examination tory isolation for 14 days. with Pakistan, but the pub- Gandhi Hospital for test- is complete, a Punjab gov- The rising cases have led lic will not be allowed to ing. ernment official said. “We to a widespread cancella- attend in line with govern- are conducting a proper tion of events. IIFA 2020 ment guidelines. ■ Full report on Page 2 Corona scare enters Assembly S.A. ISHAQUI | DC session of the assembly and tried to hug Mr Rama Rao, Mr Rajendar’s shoulder. HYDERABAD, MARCH 6 the legislative council, IT but was foiled with a smile Mr Rajendar neither minister K.T. Rama Rao, and a word that did the lat- shook hands with fellow There were light moments finance minister T. Harish ter want to kill the former. ministers, MLAs or MLCs on the first day of the Rao, health minister Etala Mr Harish Rao shook in the House. He kept his Budget session of the Tela- Rajendar and animal hus- hands with colleagues and hands, folded, behind his ngana Legislative Assem- bandry minister Talasani also gave a consolation hug back, and gestured to fel- bly on Friday. Coronavirus Srinivas Yadav were chat- to Mr Yadav. During low members with vigor- appeared to weigh heavily ting. their conversation, Mr ous shaking of his head – on the conversations betw- Mr Rama Rao refrained Harish Rao rested his hand from the moment he een ministers K.T. Rama from shaking hands with on the health minister’s entered the House till the Rao, T. Harish Rao, Etala his colleagues right from shoulder, at which point time he left the premises. Rajendar and Talasani the moment he stepped out Mr Rama Rao cautioned Most members in the lob- Srinivas Yadav. of his car. When he left the him that coronavirus can bies of the House were also Moments before Gover- House after the Governor’s stay on clothes for a period seen wishing fellow mem- nor Dr. Tamilisai Soundar- address, he greeted all with of time. Mr. Harish Rao bers with a simple ajan addressed the joint a “Namaste”. Mr Yadav jerked away his hand from “Namaste”.