Ahmedabad: Vadodara Smart City Development Company, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), shifted its entire corpus of ₹265 crores deposited with Yes Bank to Bank of Baroda just hours before RBI moratorium on Yes Bank, said Sudhir Patel, Deputy Municipal Commissioner of Vadodara.
On Thursday, the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank’s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.
“Our Smart City account was in Yes Bank. As per our rule, we have an internal auditor too who gives us a report every three months. We had received a report three months back that Yes Bank is not financially well so we must go for another nationalized bank,” Patel told ANI.
He added that around two months back a board meeting was held where this matter was discussed with the Board of Directors.
“It was decided to move to a nationalized bank, the CEO had the power to do that. We contacted all nationalized banks and invited offers from them,” said Patel.
“After discussion, it was decided to transfer the account to Bank of Baroda. One month bank we opened our account in Bank of Baroda and luckily, transferred our entire fund of ₹265 crores into Bank of Baroda, five days back,” he added.
Meanwhile, the Enforcement Directorate (ED) on Sunday arrested Yes Bank founder Rana Kapoor.
During the period of moratorium, the Yes Bank Ltd will not, without the permission in writing of the Reserve Bank of India, make in the aggregate, payment to a depositor of a sum exceeding ₹50,000 lying to his credit in any savings, current or any other deposit account.