Law to punish husbands after instant talaq will be a New Year gift for Muslim women: Modi

New Delhi, Mar 6: Shares of YES Bank and State Bank of India came under huge selling pressure on Friday as developments unfolded regarding SBI picking stake in the private lender. Shares of the lender hit record low of Rs 5.55, plunging 85 per cent, and were trading below its previous low of Rs 8.16 hit on March 9, 2009.

SBI, on the other hand, slumped 11 per cent to Rs 257.35 on the BSE. The benchmark S&P BSE Sensex was trading with a cut of over 3 per cent at 37,251.37 level.

In the past three months, share price of the private lender has plunged 41 per cent, while the state-owned lender has slipped 14 per cent. In comparison, the S&P BSE Sensex has dipped 5.6 per cent till Thursday.

On Thursday, the Reserve Bank of India superseded the board of troubled private sector lender YES Bank and imposed a 30-day moratorium on it “in the absence of a credible revival plan” amid a “serious deterioration” in its financial health.

During the moratorium, which came into effect from 6 pm on Thursday, YES Bank will not be allowed to grant or renew any loans, and “incur any liability”, except for payment towards employees’ salaries, rent, taxes and legal expenses, among others.

This is the first time that a bank of this size will be put under a moratorium by the RBI.

“The financial position of YES Bank had undergone a steady decline “largely due to inability of the bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits,” RBI said in a statement.

“After the moratorium, the next step will be to infuse to money and keep the bank afloat. So from shareholders’ point of view, the future is certainly hazy as the capital requirement is huge. The good part, however, is that the RBI has stepped in and depositors don't have to worry,” says Siddharth Purohit, a research analyst at SMC Securities.

Meanwhile, analysts at Nomura believe that placing the Bank under moratorium implies that equity value in the bank would be negligible, and that the chances of private capital participating in future capital raising plan are near zero.

"Any resolution for Yes Bank is more proposed from the perspective of deposit holders and systemic stability, and not from the perspective of Yes Bank equity investors or even perpetual bond holders," they wrote in a note dated March 6.

In another development, SBI’s Board Thursday gave in-principle approval to consider an “investment opportunity” in YES Bank, even as it said “no decision had yet been taken to pick up stake in the bank”.

According to a  report, highly-placed sources indicated a rescue plan involving SBI and Life Insurance Corporation of India (LIC) was being discussed and an announcement in this regard might be made soon.

“While the finer details of the deal are being worked out, it is anticipated that both SBI and LIC together will take a 51 per cent stake in the bank, with a one-year lock-in period,” the report said.

Most analysts believe it is a positive step for the Indian financial sector as the government has tried to avoid a repeat of IL&FS-like crisis.

“The move is a positive step for the financial sector as a whole. By this, the government has tried to avoid a repeat of IL&FS-like crisis and has saved the depositors,” said AK Prabhakar, Head of Research at IDBI Capital. While we know that YES Bank has a huge pile of bad loans, SBI is the only bank that has the capacity to absorb it, he added.

However, the valuation at which YES bank would be taken over remains a cause of concern.

Global brokerage firm JP Morgan Thursday cut its target price for YES Bank on Thursday to Rs 1 per share, taking into account the potential fall in the lender’s net worth due to stressed assets.

“We believe forced bailout investors will likely want the bank to be acquired at near-zero value to account for risks associated with the stress book and likely loss of deposits. We think the bank will need to be recapitalised at nominal equity value and could test dilution of additional tier 1 (AT1) capital. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired,” JP Morgan said in a note.

Global brokerage firm Nomura estimates a need of Rs 25,000-44,000 crore and adjusted for Rs 7,400 crore of current coverage, if the current stress of Rs 65,000-70,000 crore faces 70 per cent loss given default (LGD).

"It implies Rs 18,000-37,000 crore needed for provisioning against the current net worth of Rs 25,700 crore Also, to run as going concern, the bank would require over Rs 20,000 crore of CET-1 capital as well," the note said.

YES Bank has registered slippages of Rs 12,000 crore so far in FY20, while it has placed Rs 30,000 crore of loan assets under the watch list. Its deposits stood at Rs 2.09 trillion on September 30, 2019, while its advances totalled Rs 2.24 trillion. The bank has delayed publishing its December quarter results by a month to March 14.

Jaipur, Jan 27: Senior Congress leader Shashi Tharoor said that if the Citizenship Amendment Act leads to the implementation of the NPR and the NRC, it would be a complete victory for Pakistan's founding father, Muhammad Ali Jinnah.

He said that Jinnah's idea of a country was already winning in India with the contentious Citizenship Amendment Act (CAA) coming into effect, but asserted that there was still a choice available.

"I would not say Jinnah has completely won, but I would say Jinnah is winning. There is still a choice available to the nation between Jinnah's idea of a country and Gandhiji's idea of a country," he said on the sidelines of the Jaipur Literature Festival on Sunday.

The CAA came into force in India in December amid protests across the country and around the world.

The MP from Thiruvananthapuram said that the amended Citizenship Act took Jinnah's logic by declaring that religion shall be the basis of nationhood, reaffirming that Gandhi's idea is that all religions are equal .

"The CAA is, if you are talking Tennis, you would say one set up or big first set lead for Jinnah. But the next step would be if the CAA would lead to the National Population Register (NPR) and the National Register of Citizens (NRC). If that happens, then you would consider that Jinnah's victory is complete," he said.

The CAA seeks to grant citizenship to migrants belonging to Hindu, Sikh, Buddhist, Christian, Jain and Parsi communities who came to India from Pakistan, Bangladesh and Afghanistan on or before December 31, 2014.

On the BJP's defence that the NPR was carried out during the UPA regime, Tharoor said that the Congress government had utilised a decision of the NDA government led by former prime minister Atal Bihari Vajpayee.

"It never asked where were your parents born. It never authorised the enumerators to note on the margin 'dubious citizenship', a term used in the NPR rules crafted by this government. That is purely BJP's invention," he said.

If we go around this country authorising people to interview all the citizens, or identify some who have 'dubious citizenship', you can be pretty sure which Indians are going to be found on the 'dubious citizenship', he said.

"That will principally be one community that is not mentioned in the CAA. And if that happens, then it is indeed Jinnah's victory.

"From wherever he is, he can point to this place and say, 'see I was right in the 1940. We are separate nations and Muslims deserved their own country because Hindus cannot be just'," Tharoor said.

Speaking about the Delhi election, the three-time MP said that the maximum development in the national capital happened under the Congress government.

"What Sheila Dikshit did in her 15 years as Chief Minister of Delhi, no other leader could do it before or after her," he said.

Mumbai, Mar 7: Maharashtra Chief Minister and Shiv Sena president Uddhav Thackeray visited Ayodhya on Saturday to commemorate 100 days in office and pledged Rs 1 crore towards the building of the Ram Temple.

Taking a dig at BJP, Uddhav said his party had separated from its erstwhile ally but not Hindutva.

Recollecting the contribution of his father Balasaheb Thackeray, uddhav said he was forced to skip the Sarayu River 'aarti' due to Coronavirus fears but he would continue visiting Ayodhya.

Earlier in the day, the Sena, which heads the tripartite dispensation in the state, said there was no change in its ideology.

Launching a veiled attack on BJP, an editorial in the Sena mouthpiece 'Saamana' also said that Lord Ram and Hindutva is not the sole property of any single political party.

The Sena also said the Maha Vikas Aghadi (MVA) government — which also comprises the NCP and the Congress — has completed 100 days, much to the chagrin of those who were claiming that the new dispensation will not survive more than 100 hours.

“Those whose government lasted for 80 hours were claiming that the Thackeray regime will not last for even 100 hours. But this MVA government not only thrived but has instilled trust in the minds of people during this period with its performance,” the editorial said.

The Sena was apparently referring to the second inning of the erstwhile Devendra Fadnavis government which lasted for only 80 hours in November last year.

"Hence, CM Thackeray's visit to Ayodhya has to be welcomed as he is offering the flowers of works (done by the government) at the feet of Lord Shriram," it said.

The Sena said Thackeray's visit to the temple town is out of devotion for Lord Shriram. "The government in Maharashtra comprising three ideologically different parties is working as per Constitution and Thackeray is leading such government," it said.

The edit said on this background various questions were raised over Thackeray's visit to Ayodhya by his political opponents. "The government maybe backed by anyone, but Uddhav Thackeray and the Shiv Sena remain the same from within and outside. There is no change in the ideology. Lord Shriram and Hindutva is not the property of any single party," it stated.

Referring to senior RSS leader Suresh 'Bhaiyyaji' Joshi's remark that the Hindu community is not synonymous with the BJP and that opposing the BJP does not amount to opposing Hindus, the Sena said similarly Ayodhya belongs to all.

"The political and cultural battle in Ayodhya is now over. The Supreme Court cannot be thanked enough for this (for its verdict in the Ram Janmabhoomi-Babri Masjid dispute case that allowed construction of the Ram temple)," it said.

Hailing the Supreme Court's November, 2019 verdict, the Sena said the country had to fight a big battle to prove that Ayodhya belonged to Lord Shriram.

"In that battle, several (people) were unmasked. But only (late) Shiv Sena president Balasaheb Thackeray stood behind the Ayodhya (temple) campaigners like a mountain," it said.

Bal Thackeray created trust among Hindus from across the world about the creation of the temple, the Sena said. The party further said late Thackeray's assertion that he was proud if the Babri mosque was razed by Sena workers and that the temple of Lord Ram would come up in Ayodhya was akin to the thunder of "thousands of lightnings" in the sky.

"The Hindu culture got lit up in the glow of that lightning. The resplendent rays showed the path of power to the Hindu community. Hence, no one can deny the contribution of the 'Hinduhridaysamrat' (Bal Thackeray) as good as that of Lord Shriram, in creating the current political order in the country," the Sena said.

"We have experienced several times that Balasaheb lives in the mind of Ayodhya. Now Uddhav Thackeray himself is going there with the same faith. He had gone there when not in power. He is going there now after becoming chief minister with the same humility. Lord Shriram is of everyone," the Sena said.

The party said Maharashtra is being run on the path shown by Lord Shriram and Chhatrapati Shivaji Maharaj. "A Ram Rajya entails fulfilling promises made to the people. This is precisely what Mahatma Gandhi wanted, and the government following this ideology is in place in Maharashtra. It will continue work on that line. Ultimately, Lord Shriram is there to support it," the Sena said.

Thackeray completed 100 days in the office on Friday. He had assumed office as the chief minister of the Sena-led Maha Vikas Aghadi (MVA) government on November 28 last year, after the Sena joined hands with the NCP and the Congress.

Senior Sena leader Sanjay Raut had said that Thackeray will not take part in the 'aarti' programme on the banks of river Sarayu in the temple town.