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Indian Shares Plunge in Fallout from Yes Bank Crisis

New Delhi (Sputnik): India's banking regulator, the Reserve Bank of India, superseded the board of Yes Bank late Thursday evening on account of the bank's "serious deterioration of financial health".
Sputnik

India's bourses crashed in early trading on Friday against the backdrop of the Yes Bank crisis. Bombay Stock Exchange's 30-share index Sensex fell over 1,400 points in opening trading. The National Stock Exchange's Nifty too crashed 320 points in early trading. 

Market expert Geetu Moza told Sputnik, "Fears come true as Yes Bank has finally been placed under moratorium. As expected markets nosedived, and banking shares faced the wrath of investors. However, with RBI superseding the Yes Bank's board, the contagion risk from sudden collapse has been contained. Markets will digest the news soon".

On Friday morning, depositors of the bank queued up to ATMs in various cities as they will not be able to withdraw more than INR 50,000 ($704.22) between 5 March and 3 April, according to a notification issued by the Indian Ministry of Finance after the RBI decision late Thursday evening.

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