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Aware of YES Bank crisis since 2017, says Sitharaman; RBI announces reconstruction plan

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Amidst concerns, Union Finance Minister Nirmala Sitharaman on Friday defended RBI’s decision to impose curbs on crisis-hit YES Bank stating that the Central bank has been continuously monitoring and scrutinizing the private sector lender since 2017.

On the present development, Sitharaman said the RBI had noticed that there were governance issues and weak compliance in the bank combined with a wrong asset classification and risky credit decisions.

“We had been keeping an eye on the bank since 2017,” Sitharaman said at a press briefing on Friday evening.

The minister said she has asked RBI to assess what had caused these difficulties for the bank and clearly identify the roles played by various individuals in creating the problem and not addressing it.

“I have asked RBI to act so that the due process of law takes its course with a sense of urgency,” she said.

Sitharaman further said the Government is committed to ensuring that depositors’ interests are safeguarded. She added that the RBI has also assured that the reconstruction plan will come into play within the moratorium period. SBI has expressed willingness to invest in YES Bank, the Finance Minister said.

Attempting to allay fears of the customers, Sitharaman said deposits and liabilities will not be affected with the RBI move and assured employment and salaries for at least one year.

In a major revelation, Finance Minister Nirmala Sitharaman said investigative agencies, as well as SEBI, had noticed malpractices by top executives in March 2019.

“Sebi also started investigation from September 2019 on insider trading related matter,” said the finance minister.

Detailing about the riskier lending the bank undertook, the minister said the YES Bank had lent money to some of the very stressed corporations like Anil Ambani Group, Essel, Dewan Housing Finance Corporation (DHFL), Infrastructure Leasing & Financial Services Limited (IL&FS), and Vodafone.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

Withdrawals from the bank have been capped at Rs 50,000 per depositor with few exceptions till April 3.

As panic gripped the customers of the bank, Union Finance Minister Nirmala Sitharaman earlier on Friday assured the depositors that their money is “safe”.

Meanwhile, the Reserve Bank of India has announced a scheme of reconstruction for the cash-strapped private sector lender in a notification issued on Friday evening.

In a draft reconstruction plan for the crisis-ridden Yes Bank, the RBI said that SBI has expressed willingness to invest in the private lender and that it will bring in 49 per cent equity.

It also said that Yes Bank’s capital stands altered at Rs 5,000 crore.

The RBI has invited suggestions and comments from members of the public, including the banks’ shareholders, depositors and creditors on the draft scheme. The draft has also been sent to Yes Bank and the SBI for their comments. The RBI will receive suggestions up to Monday (March 9) and thereafter, take a final view.

The other points of the draft are that all deposits with Yes Bank will continue in the same manner and with the same terms and conditions, completely unaffected by the scheme. Authorised capital shall stand altered to Rs 5,000 crore and the number of equity shares will stand altered to Rs 2,400 crore of Rs 2 each. The investor bank shall agree to invest in the equity of reconstructed Yes Bank to the extent that post infusion, it holds 49 per cent shareholding in the reconstructed bank at a price not less than Rs 10 (face value of Rs 2) and premium of Rs 8.

Earlier today, RBI Governor Shaktikanta Das said the Central bank took the step after it found that the private sector lender’s efforts were not working out.
Das further said the RBI is ready to deal with the challenges of the move very effectively’ and added that “very swift action” will be seen from the Central bank to revive YES Bank.

The YES Bank has over 1,000 branches and 1,800-plus ATMs around the country which are under severe stress after the crisis erupted last night.

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Business

Delhi: Businesses can now remain open 24×7, over 300 applications cleared by L-G

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Photo by Rehan Fazal on Unsplash

From restaurants to transport services and BPOs to online delivery services, all those who apply for exemptions will be allowed to operate 24×7 in Delhi starting next week, with Lieutenant Governor V K Saxena approving the proposal to exempt 314 such places to operate all day long, some of them pending since 2016, officials said.

“The L-G has directed that notification to this effect be issued within seven days. The decision of providing exemption under Sections 14, 15 & 16 of the Delhi Shops & Establishment Act, 1954, is expected to boost employment generation and promote a positive and favorable business environment that is a prerequisite for economic growth. The decision will also provide a fillip to the much desired ‘nightlife’ in the city,” said an official.

Source: IndianExpress

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Business

Swiggy Instamart figures, Mumbaikars ordered 570 times more condoms in the last one year

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Customers are also ordering medical-related things through online shopping platforms. In metros like Mumbai, Hyderabad, Delhi, and Bangalore, people are buying goods online in large numbers. People living in metro cities including Bengaluru, Delhi, and Mumbai ordered an average of 6 million eggs in the last year.

These days people are doing online shopping fiercely in the country. Through Grocery Service Platforms, the goods of need are easily reaching people’s homes. From vegetables to medicines, just a few clicks on the smartphone are reaching people’s doorsteps. According to a survey, Swiggy Instamart has provided service to more than 9 million users between June 2021 and June 2022. In metros like Mumbai, Hyderabad, Delhi, and Bangalore, people are buying goods online in large numbers.

Healthcare products orders

Customers are also ordering medical-related things through online shopping platforms. According to a survey, Mumbaikars have ordered 570 times more condoms in the last 12 months. At the same time, in 2021, Instamart received orders for about two million sanitary napkins, menstrual cups, and tampons. Apart from this, a lot of orders have also been received for grocery items.

56 lakh packets of noodles ordered

According to the survey, between April and June last year, there was a 42 percent increase in the demand for ice cream in these metro cities. It was also learned that most of the orders were placed after 10 pm. In metro cities, people have ordered 5.6 million packets of instant noodles. In Hyderabad, users ordered around 27,000 bottles of fresh juice during the summer months.

60 lakh eggs ordered

The demand for eggs has increased manifold in the last two years. People living in metro cities including Bengaluru, Delhi, and Mumbai ordered an average of 6 million eggs in the last year. According to the report, customers from Bangalore and Hyderabad ordered the maximum number of eggs for breakfast. At the same time, people of Mumbai, Jaipur, and Coimbatore have ordered the maximum number of eggs online at the time of dinner.

Demand for dairy products

There has been a huge jump in orders for both tea and coffee. According to the report, there has been an increase of 2,000 percent in its demand. At the same time, 3 crore orders of milk have come for milk. People from Bangalore and Mumbai have placed more orders in the morning. Regular milk, full cream milk and toned milk are the most ordered dairy products.

Ordering fruits and vegetables

Orders for 62,000 tonnes of fruits and vegetables have been received in the last year. With 12,000 orders, Bengaluru tops the list of organic product buyers. At the same time, Hyderabad and Bangalore together have ordered more than 290 tonnes of green chilies in 12 months. Over 2 lakh orders have been received for bathroom cleaners, scrub pads, drain cleaners, and more in the last year.

Source: Aajtak

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Brand Story

Zepto, 10-minute grocery delivery app, raises $100 million

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Only five months subsequent to dispatching, 10-minute basic food item conveyance application Zepto on Tuesday reported it has raised $100 million driven by Y Combinator, taking its valuation to $570 million.

Other than the raise money, Zepto has been developing staggeringly rapidly and is significantly increasing its client base consistently.

In the course of recent months, Zepto has extended past Mumbai by dispatching in Bengaluru, Delhi, Gurgaon, Chennai, Hyderabad, and Pune (Kolkata to follow), the organization said in an assertion.

“Financial backers are reliably deciding to back Zepto due to our top tier execution. This is giving us extraordinary energy – we’re developing at an amazing rate, clients are adoring the item experience, our center unit financial matters are solid, and we have one of the most outstanding startup groups in India today,” said Aadit Palicha, Co-Founder and CEO.

The Series C raising money round saw support from new and existing financial backers, including Glade Brook, Nexus, Breyer Capital, Lachy Groom, Global Founders Capital, Contrary Capital, and that’s just the beginning.

The round came 45 days later the organization reported its $60 million raise money in November.

Conveying food in a short time is a game-changing encounter for clients in the nation, and a few players are presently joining the race.

“We are eager to twofold down and lead this round in Zepto. They initially dispatched with an alternate model, quickly turned to speedy trade in August 2021, and are presently adding 100,000 new clients consistently, 60% of the ladies,” said Anu Hariharan from Y Combinator.

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