Depositors Staying Put Is Key to India’s Biggest Bank Rescue
- Yes Bank’s deposits erode 34% from Sept. 30 through March 5
- Bank’s survival crucial for India’s financial stability
Customers stand in line outside a Yes Bank Ltd. branch in Mumbai, India, on Friday, March 6.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Depositors will judge this week whether India has staved off another threat to banking sector stability when curbs on withdrawals from a recently-seized private lender are lifted.
Yes Bank Ltd.’s share price has more than doubled since the authorities late Friday implemented a one-of-a-kind rescue plan that saw eight state-backed and other lenders pledge capital infusions. Most of Yes Bank’s stock can’t be sold for at least three years and the Reserve Bank of India has pledged more liquidity if needed to restore confidence in what till recently was India’s fourth-biggest private bank.