Shravan Hardikar, commissioner of Pimpri Chinchwad Municipal Corporation could be a worried man. And why not? The moratorium on Yes Bank means restriction on the corporation's account that could contain Rs 700 -800 crores. That's money to manage an entire city.* Now, do you get the idea of the damage? Yes/No? Read through the slides. Don't be a Goldfish.
Restrictions imposed on Yes Bank are making any one holding a bank account worried. That despite the bank employees, regulator, finance ministry, finance minister and even State Bank of India promising of normalcy before April 3 2020.
Hopes of normalcy are pinned upon State Bank of India and the Life Insurance Corporation of India. The banker to the nation will be leading a consortium and is reportedly planning to infuse Rs 2,450 crores for a 49% stake at Rs 10 per share.
Not many are keen to believe that normalcy will arrive without strife. The immediate comparison is with death of ten account holders after restrictions were placed on PMC (Punjab Maharashtra Cooperative) Bank. The average common twitter user thinks more obituaries could follow post restriction on India's fourth largest private lender. The narrative of dry ATMs and half-shuttered branches eerily reminds a former banker (does not want to to be identified) of the days of demonetisation. Obviously, it was the day when that big promise - "I promise to pay..." was broken. The opposition claimed 100 lives were lost in the country's scramble for weeding out black money. The current case is not as big; just ensure a bank bloated of NPAs (Non-performing Assets) and touting of some Rs 2.1 trillion in deposits to stand again.
The coming month will have several disruptions in the lives of people and corporate. Here are those men, women and companies who's lives would be affected.
Next Slide: Aam Aadmi's woes
*The Pimpri corporation has a different account with Rs 4,000 crores. Unfortunately not all corporations are smart. Then, there are some genuinely smart ones, such as the one in Gujarat that withdrew Rs 265 crores, a day before the extraordinary Gazette notification on Yes Bank's moratorium was published online. That development on slide#4.
Text: Sairaj Iyer, Sify Finance
Image: Individual Agencies and Sify Archives