SBI rescue plan for Yes Bank bizarre, says P Chidambaram

NEW DELHI: Former finance minister P Chidambaram on Saturday questioned the credibility of the resolution plan for Yes Bank proposed by the State Bank of India (SBI) by calling it bizarre, especially when the bank’s net worth is zero.

Addressing a press conference over the crisis, Chidambaram asked why the loan book of the cash-strapped bank was not acknowledged even when the loan amount jumped miraculously from Rs 55,633 crore in March 2014 to Rs 2,41,999 crore in March 2019.

“Why did alarm bells not ring when first quarterly loss was reported?” the Congress leader noted.

Accusing the government, Chidambaram said Yes Bank “fiasco” is only part of the mismanagement of financial institutions under the watch of the BJP government.

Yes Bank indulging in loan giving spree “isn’t banking but buccaneering”, he said.

Pointing to a 800 point slide, the former finance minister added that the best judge of economy is the market — not the finance minister or anyone else.

The congress leader suggested that SBI should make every effort to recover the outstanding loans of the bank and assure depositors that their money will be returned.

On Friday, finance minister Nirmala Sitharaman blamed loans given under the UPA regime to stressed corporates for the financial troubles faced by the private lender.

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