Mumbai, March 6: YES Bank shares have tanked more than 45 percent after the private bank was placed under a moratorium by the Reserve Bank of India (RBI). Depositors rushed to the ATMs to withdraw cash and there was huge panic as RBI capped deposit withdrawals at Rs 50,000 per account for a month for customers. The stock was trading at Rs 15.20, down 58 percent at 12:00pm on Friday.

The stock performed well on Thursday after news that State Bank of India would come to its rescue.  A report by ET hinted that the SBI and the Life Corporation would bail out YES bank by picking up 49 per cent stake in the bank and by acquiring preferential shares in the private lender at Rs 2 per share. YES Bank Crisis: Frantic Customers Line Up Outside ATMs as RBI Caps Withdrawals at Rs 50,000 For a Month.

The Sensex was trading at 37,266, down 3 percent. Nifty on the other hand was trading at 10,898, down 3 percent at 11 am on Friday. The other banking stocks were also bleeding, including IndusInd Bank, ICICI Bank, and HDFC Bank.

Check ANI tweet:

As soon as the RBI order came on Thursday evening, the net banking and online options were pulled offline. The ATMs too ran dry, thus creating more panic. State Bank of India shares was also trading at Rs 269, down 7 percent.

Prashant Kumar, ex-DMD and CFO of State Bank of India was appointed as the administrator of YES Bank under Section 36ACA (2) of the Act. The restriction was imposed on the private bank after it was found that it was grappling with mounting bad loans.

(The above story first appeared on LatestLY on Mar 06, 2020 10:50 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).