HYDERABAD: Yes Bank will be back to factory settings, restoring all banking services on Wednesday at 6 pm.
Having raised Rs 10,000-crore life-saving capital from a consortium of eight banks, the 30-day moratorium is being lifted 17 days in advance.
The bank said it was standing ready with funding lines to honor any or all deposit withdrawals from customers. "There is absolutely no issue on liquidity side from Yes Bank. All our ATMs are full of cash," said Prashant Kumar, administrator, Yes Bank.
But given that only one-third depositors exercised the maximum withdrawal limit of Rs 50,000, the bank hopes outflows will be limited. In fact, according to Kumar, there were more inflows than outflows in the past four days.
Neither does he see a need for keeping branches open during the weekend as he anticipates no frantic rush or a run on the bank to put it in banking parlance. In fact, on Monday, RBI Governor Shaktikanta Das also assured depositors that their money was safe and urged them to restrain from panic withdrawals.
Domestic investors led by SBI, ICICI, HDFC and others are pumping in Rs 10,000 crore, which is sufficient to meet the regulatory capital for now. However, the bank will likely go for the second round of fundraising, perhaps even from foreign investors, 80 per cent of which will used towards growth capital.
Elaborating on the bank's business strategy, Kumar said its deposit franchise posed the biggest concern. One of the first things, the new management intends to do is to build a sustainable retail deposit franchise and move away from high interest-bearing bulk deposits. "Going further, we need to build a granular retail deposit franchise," Kumar said.
Similarly, the bank prefers to shift its focus from corporate lending to retail. Currently, the former accounts for 60 per cent of the business and the latter, 40 per cent. Kumar wants to reverse this in next few years.
In all likelihood, the latest results show that December was a kitchen-sink quarter with Yes Bank increasing provisions to 72 per cent of total advances after recognizing most of the bad loans as on March, 12.
"Additional provisioning for fresh slippages will be done from recoveries," Kumar said adding that next fiscal, the bank will likely recover Rs 8,500 crore to Rs 10,000 crore.
The new management will retain Yes Bank branding and comfortingly, there won't be any further forensic audit of the bank's books.
"As per our due diligence, there is nothing wrong with the book. Whatever has been declared by the bank is a true representation of the bank's financial position," said Rajneesh Kumar, Chairman, SBI.
SBI has recommended two nominee directors namely Partha Pratim Sengupta and Swaminathan Janakiraman as board members for Yes Bank board. The new board will assume charge next Thursday.