Kotak Mahindra, 2 Other Banks Allay Depositors Concern, Say Financially Strong

Mumbai, Mar 11 (PTI) Days after the collapse of Yes Bank, at least three of its peers, including Kotak Mahindra Bank (KMB), on Wednesday asserted about their strong capital position and allayed depositors' fears.

The response was supposedly necessitated by "rumours" floating around on social media platforms about the health of these banks.

Yes Bank had to be put under moratorium due to its inability to raise capital even as the buffers were depleting. Withdrawals have been capped at Rs 50,000 per account for the next month.

In a statement, KMB said it is financially strong, and a well capitalised bank with a strong risk and corporate governance framework.

"Your deposits with us are absolutely safe," the bank said in a late evening statement.

Its smaller rival RBL Bank was the first in the morning to come out with a similar statement, and said that it is financially strong, well capitalised, profitable and a growing entity with strong governance.

South-based lenders Karnataka Bank and Karur Vysya Bank also came up with similar statements during the day.

All the statements mentioned the last reported capital to risk adjusted assets ratio, by which the financial strength of a bank is judged, to drive home the point of the institutional strength.

The statements also came three days after the RBI had to come out with a clarification on reports in a section of media about the importance of market capitalisation of a bank while assessing its financial position.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)