YES Bank has refuted a viral Whatsapp message spreading rumours that it may shut down. This message builds into the public angst generated after Mumbai- based Punjab and Maharashtra Co-operative Bank (PMC Bank) was subject to banking restrictions by the Reserve Bank of India (RBI).
The message states that YES Bank may be the next bank to fall after PMC Bank. The message further cites brokerages’ opinions through an article filed by business news website Moneycontrol, as the basis of its claim. The article refers to YES Bank’s recent fall in share price, its declining asset quality and its ability to raise capital.
The article carries a disclaimer stating that the opinion is of the contributors, and not of Moneycontrol. Further, YES Bank’s shares fell to a 10-year low on September 30, ending at Rs. 41.40 on the National Stock Exchange. It is trending on Twitter through the hashtag ‘#yesbank’.
The bank has been facing troubles in recent years, including exposure to a weak financial and real estate sector, an RBI-driven change in its leadership and questions over its asset quality, and thus profitability.
BOOM received this message multiple times on its helpline (7700906111).
Speculation and rumours regarding YES Bank’s closure have also been rife on Twitter over the last few days. Users have been tweeting to the government and to the bank seeking clarity over them.
‘Financial Position Of YES Bank Is Sound’
Putting to rest speculation made by the message, a spokesperson of YES Bank told BOOM:
“There have been messages circulating on social media platforms about YES BANK’s stability, asset portfolio and future growth prospects. We strongly refute such speculations which we suspect is a deliberate & malicious attempt to create instability in the institution by undermining investor and client confidence. The financial position of YES BANK is sound and our liquidity & operating performance continue to be robust.”
Ravneet Gill, MD and CEO of YES Bank has also given a formal statement refuting the misinformation around the bank and states the banks’ plans to raise capital, issued through a press release. This can be seen here.
Rumours And Fake News Hits The Banking Sector
The rumours surrounding YES Bank seem to be the latest among gloomy messages pertaining to banks and to the banking system that are doing the rounds on social media post the PMC Bank incident.
Recent misinformation has included:
- Viral rumours surrounding the RBI, stating that nine public-sector banks will be shut down, which can be read here.
- An incorrect list of upcoming banking mergers aimed at creating panic among minority scholarship beneficiaries, which can be read here.
The RBI has had to warn against misinformation twice over a span of two days.
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