Comments on RBI announcement - Suman Chowdhury, President - Ratings at Acuité Ratings & Research

"RBI has reiterated its support for the revival of Yes Bank, the plan for which has been finalized by both the regulator and government with an upfront equity infusion of Rs. 10,000 Cr from a group of public and private sector banks led by RBI. Hopefully, this will arrest any large scale withdrawals of deposits once the moratorium on the bank is lifted and prevent any panic among private sector bank depositors. While RBI did not announce any immediate rate cut, it did indicate that a rate cut will be considered during the next MPC meet. It also announced two important liquidity measures - i.e. a rupee dollar swap to prevent any undue volatility in the exchange rate and additional LTRO to the extent of Rs. 1 Lakh Cr to address any sudden liquidity requirements in the banking system."

Source : Equity Bulls

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