Yes Bank’s rescue deepens worries about Indian finance
It is the second bank scare in six months. Who is in charge?
INDIA, WHICH has few declared cases of covid-19, has not escaped the turmoil in global markets. On March 9th its stockmarkets suffered their biggest one-day fall in absolute terms ever, notwithstanding the positive impact low oil prices should have on a big energy importer. Its problems go beyond people’s health.
On March 6th a different crisis came to a head when a government-controlled but publicly listed lender, State Bank of India (SBI), threw a lifeline to Yes Bank, once a darling of the stockmarket, which now faced a scramble to withdraw deposits. It was India’s second banking scare in six months. It raises questions about who is safeguarding the financial system.
This article appeared in the Finance & economics section of the print edition under the headline "When Yes means no"
Finance & economics March 14th 2020
- Corporate bonds and loans are at the centre of a new financial scare
- No one is likely to win the oil-price war
- Entering a bear market
- The challenge of addressing covid-19’s economic effects in Europe
- Yes Bank’s rescue deepens worries about Indian finance
- A spike in the dollar has been a reliable signal of global panic
- Throughout history, pandemics have had profound economic effects
From the March 14th 2020 edition
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