Yes Bank, State Bank of India will not merge

The Indian central bank took over Yes Bank for not having enough capital.

India’s Yes Bank will not be merged into the State Bank of India despite the latter injecting funds into the former, reports Reuters.

Last week, the Reserve Bank of India took over the beleaguered Yes Bank after the debt-ridden lender failed to raise enough capital to stay above regulatory requirements.

Under a 30-day moratorium, the central bank placed limits on withdrawals to shield depositors and said it would work on a recovery plan, which scared depositors and rushed to withdraw their funds.

SBI former finance chief Prashant Kumar assured clients that their money was safe and that the moratorium might be lifted earlier than April 3 and that banking operations might resume Friday.

Here’s more from Reuters.