New Delhi: Congress leader and former finance minister P Chidambaram on Saturday targeted the Modi government over Yash Bank. He said that Yes Bank’s failure is a result of mismanagement of the financial institutions under the supervision of the BJP government. It also raised questions on SBI’s investment plan to bail the bank out of the crisis.
In a press conference, Chidambaram said that the loan book amount was Rs 55 thousand crore in March 2014, which increased to Rs 2 lakh crore in March 2019. Between 2014 and 19, the bank’s loan doubled to five times. After March 2014, who gave approval to distribute the new debt.
Does the RBI and the government not know that Yash Bank was in the race to give loans? Did nobody in the RBI and the government read the balance sheet of the bank at the end of every year? Why has nothing changed after the appointment of a new CEO in place of CEO in January 2019?
Why was nothing changed after the former Governor of Reserve Bank of India was appointed to the board of Yes Bank in May 2019? When Yes Bank reported losses in the first quarter of January-March 2019, why did the alarm bell not ring?