P Chidambaram Says SBI’s Resolution Plan For Yes Bank Is 'Bizarre', Blames BJP Govt For Fiasco

Congress leader and former Union finance minister P Chidambaram on Saturday said the resolution plan proposed by the SBI for the financial crisis-hit Yes Bank is bizarre and blamed the BJP government’s "mismanagement"  for “fiasco”.

He said it was "bizarre" for State Bank of India to invest Rs 2,450 crore to pick up a 49-per cent stake in the crisis-ridden bank under a government-approved bailout plan.

“The resolution plan proposed by the SBI for the Yes Bank is bizarre when bank's net worth is perhaps 0. It would be better for the SBI to take over, on RBI's order, the Yes Bank's loan book at Rs 1 and to assure depositors that their money will be returned,” said Chidambaram at press conference.

The fiasco in the private sector lender was caused by "mismanagement of financial institutions under BJP government", the Congress leader said and demanded a thorough probe by the Reserve Bank of India into the crisis.

A day after imposing a 30-day moratorium on Yes Bank and capping withdrawal limit at Rs 50,000, the RBI on Friday evening issued a draft reconstruction scheme for the private sector lender.

(With PTI inputs)