The bank has provided a written commitment that it would comply with the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis.
No respite for controversy-hit YES Bank after the RBI finds the private sector lender guilty of under-reporting bad loans, again, casting a shadow on the bank’s asset quality and profitability in Q3.
The next few months are crucial for the lender. Any more ratings downgrade is likely to send it into the prompt corrective action (PCA) framework which will check its freedom to conduct business.
With ailing banks on the one hand and a lack of credit availability the other, the government’s chief problem-solver Piyush Goyal faces another herculean task.
