Capital-Hungry Indian Lender Has Another Pain Point
- Yes Bank results may show erosion in deposits: IndiaNivesh
- Capital raising, asset quality are key challenges for Yes Bank
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When a former Yes Bank Ltd. executive started selling his stake in September, the Indian lender’s top managers watched for any sign that the resulting drop in share price would trigger a rush to withdraw deposits.
The stock sales came as customers of a regional lender -- Punjab & Maharashtra Co-operative Bank Ltd. -- were lining up outside its branches to withdraw their money following an alleged management fraud. Rampant speculation online about broader contagion forced the central bank to issue rare statements assuring the public of the safety of the financial system.