Is Yes bank safe?

  • Asked By
  • Updated On:
  • Replies:

Short Answer

Is Yes Bank Safe? For checking this we must have a look at the bank's financial stability, measures taken to protect deposits, and precautionary steps to take if concerned.

Detailed Answer

One of India's biggest private sector banks, Yes Bank offers a variety of goods and services. Although it has long been recognised as a reliable name in the banking sector, recent events have raised questions about its stability.

To analyze the safety of Yes bank, few crucial points to note down here are:

1. Financial Stability:

Yes Bank has been facing financial difficulties in recent times, with a decline in its asset quality and profitability. The mounting non-performing assets (NPA) ratio of the bank has placed strain on it's own capital adequacy ratios. As a consequence, numerous individuals have been doubting the bank's ability to pay its loans in the future.

2. Regulatory Action:

The Reserve Bank of India (RBI) had implemented significant initiatives to resolve the problems caused by the bank's financial challenges. A prohibition imposed by the RBI on the bank includes a Rs. 50,000 withdrawals restriction per depositor. To oversee the bank's activities, the RBI has also assigned an administrator.

##3. Deposit Insurance:

The RBI subsidiary known as the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance to Yes Bank depositors. Up to Rs. 5 lakh per depositor per bank is insured under it. Hence, depositors would be entitled to recover up to Rs. 5 lakh from the DICGC in the event that the bank fails.

4. Future Outlook:

The future of Yes Bank is uncertain at present moment because the Central Bank of India is now examining the bank's financial status (RBI). The withdrawal prohibition was lifted, and the RBI appointed an administrator to oversee the bank's activities. The bank is currently going through a resolution process that entails giving a new investor the majority of the company.

It's very important to keep in mind that Yes Bank is not the only Indian bank having financial issues. The Reserve Bank of India is closely observing the situation and responding to these problems as necessary. The bank's regular business activities can resume after this procedure, which is expected to take some time.

Tagged With: yes bankyes bank safeprivate yes bankyes bank secure yes bank india
Categories: Finance
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
Which bank is safest in India? Are private banks safe or public banks?

You can choose any bank in India to open an account in, be it a private-sector bank or a public-sector bank. By the market share SBI, HDFC, and ICICI Bank are the three top banks that can be considered when looking at the largest banks in India.

Is Paytm Money Safe and reliable Broker for Stock Trading & Investing?

Yes, it is completely safe to invest your money in the stock market using Paytm money App. In fact, PayTm has come up with stock broking services recently and trying to establish itself in the said field. And, to give tough fight to top existing players it has to keep its services up to the mark. Paytm Money made a big name in mutual fund investment industry and now it's time to see its performance in the stock brokers' world.

What is PPF or Public Provident Fund in India?

Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.

Is HDFC bank safe?

HDFC bank is undoubtedly a safe bank in India. The bank is India's largest private bank in terms of market capitalization and has also been ranked India's No. 1 bank in Forbes' World's Best Bank Report.

Can an Indian open account with foreign stock broker ?

Opening an account with a foreign stock broker can be a great way for Indian investors to diversify their portfolio and gain access to a wider range of investment opportunities. However,there are a few things to consider before opening an account with a foreign stock broker.

I want to close my Yes Securities Demat account as soon as possible. How to close it? Is there a way to do it online?

You need to download the account closure form available at Demat Account Closure Form and submit it at your nearest YSL branch. For the detailed process, read further.

Is Axis bank safe?

The Axis Bank is a safe bank because it satisfies all criteria necessary to fall under the category of a safe bank. The PCR and CAR ratios of Axis bank are also in the safe range, i.e., 18.54% and 77%, respectively.

Is Bank Nifty investment safe?

Yes, Bank Nifty is completely safe for investment as it represents the 12 most liquid and well-capitalized banks in India. However, due to its extreme volatility, trading in the Bank Nifty entails risk.

Is there any Canadian bank in India? Where are they located and are these branches open?

Yes, three Canadian banks have their presence in India. Bank of Nova Scotia has its branch in India, whereas, BMO and TD have their representative office in India.

What are types of bank accounts in India?

There are mainly 5 types of bank accounts in India. These include Savings account, Current account ,Fixed deposit account, Recurring deposit account and NRI accounts.