Indian banking system faces challenges due to previous government: FM
Finance Minister Nirmala Sitharaman on Friday evening, said that Yes Bank had lent to "very stressed" corporates like Anil Ambani Group, Vodafone, Essel, DHFL, ILFS among others. She also lashed out at "government in power from 2004 to 2014" and appeared to hold it responsible for the crisis in the Indian banking system. United Progressive Alliance (UPA) under former Prime Minister Manmohan Singh was in power from 2004 to 2014. Sitharaman sought to reassure that every depositor's money was safe and the situation at hand with Yes Bank was only "temporary".
During her interaction with the media, Nirmala Sitharaman said that Yes Bank had exposure to stressed corporate groups.
She asserted that such exposure was "prior to 2014".
Meanwhile, Yes Bank's new administrator Prashant Kumar has said that a retrieval plan was being worked out on high priority.
"Solution being worked on to revive Yes Bank well before the moratorium period," Bank administrator Prashant Kumar said.
Earlier tpday markets took a sharp plunge as investors became poorer by Rs 3.28 lakh crore as the BSE barometer Sensex plummeted over 1,400 points in early trade led by massive sell-off in banking, metal and energy stocks.
Tracking the plunge in the indices, the market capitalisation of the BSE-listed companies dropped by Rs 3,28,684.5 crore to Rs 1,44,31,224.41 crore.
In the opening trade, the 30-share BSE benchmark index plunged 1,459.52 points. Later, it closed 893.99 points lower at 37,576.62 as sentiment in the market remained muted amid crisis at Yes Bank and rising concerns over the economic strain of the coronavirus outbreak.
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