Communist Party of India (Marxist) has said that the collapse of Yes Bank has raised many disturbing questions about the functioning of private banks and the failure of the regulator, the Reserve Bank of India, to intervene in time.
In a statement, CPI-M said “Yes Bank episode is the worst example of crony capitalism.
The record shows that the loan account of the bank increased spectacularly from Rs. 55,633 crore in March 2014 to Rs 2,41,999 crore in March 2019.
The bank was saddled with huge loans given to corporates favoured by the ruling regime.
Some of these corporate debtors were backed to the hilt by the Modi government, despite their well recorded precarious financial health.”