Vadodara Smart City Development, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), withdrew Rs 265 crore in the nick of time. The company withdrew the huge amount just a day before the Reserve Bank of India (RBI) imposed a moratorium. The central bank Thursday restricted withdrawals from Yes Bank to Rs 50,000 per depositor due to the private lender's precarious financial situation.
Sudhir Patel, chief executive officer of the SPV and deputy municipal commissioner of the VMC, said the amount had been received from the Centre as part of a grant under the Smart City Mission and deposited with a local Yes Bank branch. It was withdrawn two days ago considering the problems faced by Yes Bank and transferred to a new account at Bank of Baroda, he said.
Tirumala Tirupati Devasthanam in Andhra Pradesh too quite recently withdrew deposits of Rs 1,300 crore from Yes Bank. It was in October last year that the TTD Trust Board held a meeting and decided to withdraw and the money and invest it elsewhere. It is reported that TTD Board chairman YV Subba Reddy had foreseen the situation after going through performance reports of certain banks in which TTD has deposits.
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