Shares of Yes Bank hit daily permissible upper limit to trade at Rs 14.55, up 4.68% on NSE after it announced repayment of dues to the Reserve Bank of India (RBI).
On Thursday, while addressing held virtually annual general meeting (AGM), the troubled private sector lender informed its shareholders of fully repaying Rs 50,000 crore to RBI it borrowed under the SLF (special liquidity facility) window.
The management also cleared the air regarding Yes Bank’s merger with the State Bank of India (SBI), clarifying that there were no such plans.
Meanwhile, the management believes current fiscal year (FY21) to be a year of transition for the bank, which has just come out of an unprecedented Rs 10,000 crore bailout led by SBI after setbacks received under the founding team.
The government and RBI had replaced the entire board of the lender in March this year and also stopped depositors from accessing their funds for a few days.
A new management was installed, restrictions were lifted and it also completed a Rs 15,000-crore capital raise during the pandemic.
The lenders’ new board has put in place a framework to ensure risks are identified, evaluated, and addressed appropriately, making it clear that much of the work undertaken is not only to meet regulatory requirements but to make the lender stronger, agile and efficient.
The other key pillars for sustainable growth are driving operational excellence through digitisation, strong governance, and risk frameworks.
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