CHENNAI l SATURDAY l MARCH 07, 2020 l `5.00 l PAGES 32 l LATE CITY EDITION NO LAYOFF, STAFF ASSURED There won’t be any layoff. All prevailing terms and conditions for staffers will continue. Also, no branch rationalisation. It has DIGITAL TRANSACTIONS HIT The moratorium imposed on Yes Bank cast a shadow on digital transactions in India as Yes Bank accounts for about 40% of all UPI transactions. It processed 514 million transactions out of total 1,120 branches 1.13 billion in January FRAUD PROBE BEGINS Probe agencies found malpractices at Yes Bank, said Finance Minister Nirmala Sitharaman. It’s work in progress. Market regulator Sebi too began its probe on allegations of insider trading last September ASSURANCE TO DEPOSITORS FM said the government is committed to protect interest of Yes Bank depositors. RBI will ensure due process with urgency. It expects Yes Bank recast plan to come into play by April 3 RATINGS DOWNGRADE Icra and Moody’s downgrade Yes Bank tier I and II bonds as it failed to honour bond payments on March 5 worth `80 crore. Moratorium also weighed on the ratings as it limits lending and deposit mobilisation CAN’T USE CARDS FOR NOW As National Payments Corporation of India has taken Yes Bank off the grid, its over 8 lakh credit cardholders and 28 lakh debit cardholders cannot use the cards at ATMs for now GOOD MONEY, BAD BANK SBI will buy Yes Bank’s shares at not less than `10 per share. Given the face value per share is `2, it implies a premium of L8 per share CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BENGALURU ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELAGAVI ■ BHUBANESWAR ■ SHIVAMOGGA ■ MANGALURU ■ TIRUPATI ■ TIRUCHY ■ TIRUNELVELI ■ SAMBALPUR ■ HUBBALLI ■ DHARMAPURI ■ KOTTAYAM ■ KANNUR ■ VILLUPURAM ■ KOLLAM ■ WARANGAL ■ TADEPALLIGUDEM ■ NAGAPATTINAM ■ THRISSUR ■ KALABURAGI SBI set to tick Yes Bank checkbox, take on its debt burden Formal announcement expected today; stressed loans pegged at `45,000-50,000 crore; markets swing wildly S U N I T H A N AT T I @ Hyderabad IN all likelihood, state-run SBI will take over struggling private lender Yes Bank in the next 28 days flat. SBI may acquire majority stake or 49 per cent for a bill of `2,450 crore or roughly $330 million. A formal announcement is expected on Saturday . The proposed forced buyout was engineered by the RBI and the Central government as Yes Bank’s self-help plan finding a white knight fell flat, not once but thrice. Traders pulsating with anxiety following the government’s one-month moratorium and board suspension, dumped Yes Bank’s shares in toto. On BSE, the scrip fell 56 per cent to touch an all-time low of `5.55, but eventually recovered to close at `16.20. Investors were also on the edge amid intense activity with SBI Chairman calling on Finance Minister Nirmala Sitharaman, who in turn assured that depositors’ money was safe. The future of Yes Bank and the potential systemic risk its collapse could cause weighed heavily on benchmark Sensex, which itself gyrated on fears of spreading coronavirus, shedding over 890 points. Technically this isn’t a gov, er nment bailout, but one borne by bondholders. As per RBI’s Yes Bank Ltd Reconstruction Scheme 2020, announced on Friday Yes Bank’s , Additional Tier-1 bonds worth `8,800 crore will be written off permanently SBI or any inves. tor need not honour payments to bondholders. These bonds (otherwise called debt) helped Yes Bank raise capital to meet the Basel III requirements. They promised high interest but such bonds come with a rider: when trouble hits, financially struggling banks can simply choose not to repay . And if such debt gets written off, it improves bank’s core equity and reduces overall capital requirement. For Yes Bank, the government-blessed bond write off bumps up the its capital adequacy ratio by 4 per cent. In other words, liquidity in excess of $1 bn, (half of the $2 bn Yes Bank planned to raise) is created with just one stroke. Sources said, this was one of the key conditions put forth by potential investors in the bank. Besides, investors also sought writing down tier-II bonds aggregating `14,000 crore. “Good thing is, as per the draft scheme, in the nearterm, there’s no redact on tierII bonds,” an official told this newspaper. That said, the actual extent of Yes Bank’s stressed loans remains unknown. Analysts peg it at `45,000-50,000 crore, though its exact quantum and provisioning thereof too is unclear. To that extent, the bank’s turnaround depends on both fresh capital and loan recoveries. “The investor (SBI) can opt for a rights issue or a QIP to raise capital,” the official added. As per RBI’s scheme, SBI must hold 26 per cent stake for three years or until 2023. Meanwhile, RBI-appointed administrator Prashant Kumar will have a tenure of one month. When he vacates, a new board comprising a CEO and MD, a Non-Executive Chairman, two Non-Executive Directors and two nominee directors of SBI will takeover. P17 ANOTHER DELHI MAN INFECTED Between devil & Iranian deep sea S U M I S U K A N YA D U T TA @ New Delhi ON a day the Union health ministry scrambled to contact trace an American tourist who made a multi-city trip to India before reaching Bhutan where he was diagnosed with coronavirus, India’s top health research agency, the Indian Council of Medical Research (ICMR), released its first set of research papers on the infection that has caused near-pandemic globally . Sources said the 76-year-old US national and his 56-year-old partner had visited Guwahati and Mumbai after first arriving in Kolkata on February 21. He left India eight days later on March 1. “He also reportedly took a cruise ride on the Brahmaputra. We have asked the three state governments to contact trace all persons he could have been in touch with and put them on surveillance immediately,” a senior healthy ministry official said. On Friday, the total number of confirmed cases in India reached 31 — up by one. The latest addition to the list is a Delhi-based man who had recently been to Thailand and Malaysia. All 28 active cases are said to be stable. Meanwhile, ICMR officials said the research papers that are being put out will have details such as India’s preparedness to tackle the crisis, detailed patient information and genome sequencing of the virus isolated in India. The first paper titled “Ethics preparedness for infectious disease outbreaks research in India — a case for novel corona- Wrestlers’ Russia trip off Shooting WC postponed But IPL will go on: Dada Wrestlers Bajrang Punia and Ravi Dahiya have cancelled their training in Russia. Asian Olympic Qualifiers is also postponed. P18 Originally scheduled for March 15-26. NRAI has proposed May 5-12 for rifle and pistol events with shot gun competition for June 2-9. P18 BCCI head Sourav Ganguly said on Friday that IPL will begin on March 29, as scheduled, asserting all measures are in place. P18 CONFIRMED CASES 101,604 3,461 TOTAL DEATHS RECOVERED CASES 56,106 A passenger at the Chennai airport with her face mask on Friday | ASHWIN PRASATH EXPRESS READ Prof Anbazhagan passes away Chennai: Veteran DMK leader Prof K Anbazhagan passed away in the city in the wee hours of Saturday. , He was 98. Better known as Perasiriyar within the party, Anbazhagan was hospitalised since February last week. An academic turned politician, he was DMK general secretary for decades and a close confidante of late party patriarch M Karunanidhi. ENS SC clips govt’s power to deny NGOs foreign funds E X P R E S S N E W S S E R V I C E @ New Delhi THE Supreme Court on Friday ruled that the Centre cannot deprive NGOs of their right to receive foreign money by declaring them as political organisations, if they use legitimate means of dissent for public causes. Section 5 of the Foreign Contribution (Regulation) Act, 2010 (FCRA) gives the Union government “unchecked and unbridled powers” to declare an organisation as being one of political nature and deny it access to funds from sources abroad. Friday’s ruling by a bench comprising Justices L Nageswara Rao and Deepak Gupta was in response to a plea by an NGO—India Social Action Forum (INSAF)—challenging the constitutional validity of Section 5 (1) and 5 (4) of the FCRA and other rules. “It is clear from the provision itself that bandhs, hartals, rasta rokos, etc. are treated as common methods of political action. Any organisation that supports the cause of a group of citizens agitating for their rights without a political goal or objective cannot be penalised by being declared an organisation of political nature,” the court ruled. WITH THIS ISSUE C S H I V A K U M A R @ Chennai/Nagapattinam 4 PAGES virus 2019”, talked about the capability of the public health system to protect and provide quick response. “It’s a very good step that the ICMR has started publishing papers on the outbreak in India,” said Dr Gagandeep Kang, a clinician scientist and professor in the Department of Gastrointestinal Sciences at the CMC, Vellore. “It will give out useful information that will help us understand the disease pattern specific to India,” she said. P8,11,15 INDIAN fishermen stranded in Iran following the outbreak of coronavirus have alleged that they are being forced by Iranian boat owners to venture into the sea. There has been a rift between fishers and boat owners who have taken away supplies from certain boats, said Captain Johnson Charles, secretary for Meenavar Orunganaipu Sangam. When Express tried to reach out to Embassy officials, it was learnt that officials were unavailable as it was a public holiday in Iran. According to Charles, there are 783 Indian fishermen, including 450 from Tamil Nadu, stuck in Iran. According to sources, the Centre is working on their evacuation along with the Government of Iran. The move comes after CM Edappadi K Palaniswami writing a letter to External Affairs Minister S Jaishankar urging him to direct Indian Embassy in Iran to ensure their safe return. “It is learnt that a medical screening is going on. Once the fishermen test negative, they can be evacuated. We have received information from a Fisheries Department official,” said Charles. However, when Express contacted Sahaya Askar, a fisherman stranded in Chiruyeh, he said no such screening happened in Chiruyeh. “We are afraid the Embassy is ignoring us. We tried to reach out to the Embassy but nobody is , picking up the call,” he said. P3 Rana Kapoor’s house raided A N U R A D H A S H U K L A @ New Delhi ENFORCEMENT Directorate officials on Friday raided the premises of Yes Bank promoter Rana Kapoor after filing a money laundering case against him. “We have registered a case under PMLA (Prevention of Money Laundering Act). There are searches happening at few locations regarding the Yes Bank case. At this point of time we cannot reveal more,” an official said. Kapoor is being questioned at his Samudra Mahal residence by the ED team. The investigators probing his role in connection with a loan to an unnamed corporate entity and the subsequent alleged kickbacks reportedly received in his wife’s accounts. Their probe is also tied to the Yes Bank’s lending to DHFL, which has already gone bust. Earlier in the day Finance Minister Nirmala Si, tharaman said investigative agencies had found issues of malpractice at the highest level in the bank. They saw “malpractices of some of their chairman and top-order people,” she revealed. HELPING COPS Chief Minister Edappadi K Palaniswami flagging off new vehicles procured for the Police Department, at the Secretariat in Chennai on Friday | P JAWAHAR 2 die while cleaning septic tank E X P R E S S N E W S S E R V I C E @ Chennai TWO men died of asphyxiation while cleaning a septic tank at an engineering company in the Kakalur Industrial Estate, Tiruvallur, on Friday Despite manu. al scavenging being banned, continuous deaths are a testament that the practice continues unabated, even in the developed industrial corridors. The deceased have been identified as Velavan (40) and Chandru (35) of Putlur. “A few minutes after the duo went into the tank, they fell unconscious. Another staff stationed outside called out to them, but they did not respond. When he peeped in, he saw them lying unconscious,” police said. Relatives of the deceased protested demanding action against the company for indulging them in cleaning without proper safety gear. An FIR has been filed but action is yet to be initiated against the firm.
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