The Reserve Bank of India (RBI) has extended the special liquidity facility made available for private sector lender YES Bank by three months. The earlier deadline for the facility was Jun 16.
RBI had made the emergency credit line of nearly 600 billion rupees available when the bank was under a moratorium that restricted deposit withdrawals at 50,000 rupees. The moratorium, imposed on Mar 5, was lifted two weeks later.
YES Bank had written to the RBI for an extension of the special liquidity facility for a year, the bank disclosed in notes to its Jan-Mar earnings. It was not immediately known if the bank has availed by liquidity from the RBI's credit line.
“The bank had also been granted a short-term special liquidity facility for 90 days (ending on June 16) from the RBI. The bank has written to the RBI for an extension of the same for a year,” noted the auditor’s note, which is part of its fourth-quarter results.
Earlier, Prashant Kumar, Managing Director and CEO had said the extension will help the lender build up its liabilities. “Today, there is a gap between the loan book and the deposit book. It has been taken care partially by the RBI support,” Kumar told to a leading portal.