Kotak Mahindra and 2 other banks allay depositors’ concerns, say they are financially sound

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Bombay: days after the collapse of Yes Bank, at least three of his peers, including Kotak Mahindra Bank (KMB), said Wednesday the strength of its capital and allayed the fears of depositors.

The response was reportedly necessitated by “rumors” circulating on social media platforms about the health of these banks.

Yes The Bank had to be placed under moratorium due to its inability to raise capital even as the buffers were running out. Withdrawals have been capped at Rs 50,000 per account for next month.

In a statement, KMB said it was financially sound and a well-capitalized bank with a strong risk management and corporate governance framework.

“Your deposits with us are absolutely safe,” the bank said in a late evening statement.

His little rival RBL Bank was the first Wednesday morning to make a similar statement, and said it was financially sound, well capitalized, profitable and a growing entity with strong governance.

Southern lenders Bank of Karnataka and Karur Vysia Bank also made similar statements during the day.

All of the statements mentioned the latest risk-adjusted capital / asset ratio, by which a bank’s financial strength is judged, to convey institutional strength.

The statements also came three days after the RBI had to provide clarification on reports in a media section about the importance of a bank’s market capitalization while assessing its financial condition.


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