The RBI (Reserve Bank of India) imposed a moratorium on the Yes Bank a month-long. The period of the moratorium on the Yes Bank is about to end on the 3rd of April and the bank will not be allowed an amount that exceeds from a total of Rs. 50, 000 per investor during the time. The bank is even barred from granting the loans or the advances to the customers.
This bold step was taken by the RBi to improvise the failing bank’s financial condition for the better. It has been quite a time since we are seeing the Yes Bank in the news. The bank is stuck in a state of crisis and issues which are related to governance.
Apart from all the account holders of the Yes bank, many mutual fund investors are curious to know what the next that would follow is. The total of 100 schemes had n exposure of 3400 crores to the bonds as well as stocks of Yes Bank. The detailed information of the portfolio in February has yet not been revealed by all the fund houses. Therefore, the position’s appearance is quite a matter of unpredictability by the end of February.
Out of the total of 103 schemes, 16 are of debt, 21 of the hybrid category and 16 belong to the debt funds. Yes Bank has an exposure to the AMC level. The Nippon India had one of most giant exposure and that is of 1867 crore. The Franklin Templeton follows the next which is about 511 crore.
As per the expectations, the price of the stocks of Yes Bank has fallen quite away now and this might have a huge impact on the NAV. In the initial time of the market, the price got down to 85 percent and then it rose a bit and finally got settled at 55 percent during the close of the market.
Hence, it is now the call of the time for all the investors to take a step back, not rush is haste and monitor the situation. Staying invested in the market and calmly deciding on the moves is all that is expected out of a wise investor. RBLI has taken over the control with the assistance off SBI and hence, things are expected to get better from the worse that is prevailing now.