Flouting RBI norms and reckless sticky loans advanced without due diligence resulted in piling of non-performing assets.
News of the proposed takeover of Yes Bank
by the State Bank of India
(SBI) does not surprise many in the knowhow of the functioning of this private sector bank. What indeed surprises me is that the Reserve Bank of India
(RBI) took this long to react to the bleeding financial report of the said bank. In the past, there were reports of feud within the Kapoor family in their “power struggle”. Flouting RBI norms and reckless sticky loans advanced without due diligence resulted in piling of non-performing assets. Things could have been “nipped in the bud” by the RBI if it drew lessons from the bitter past episodes of banks 'covering up' their solvency! In India, we wake up only on whistleblowing and end up with a late realisation. End of the day, genuine customers are left high and dry.
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