The Enforcement Directorate on Sunday arrested Yes Bank founder Rana Kapoor
Vadodara Municipal Corporation has shifted its entire corpus of Rs 265 crore deposited with Yes Bank to Bank of Baroda five days ago, Deputy Municipal Commissioner Sudhir Patel has said.
On Thursday, the Reserve Bank of India (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 nationalised bank," Mr Patel said.
He said two months ago, a board meeting was held where this matter was discussed with the directors.
"It was decided to move to a nationalised bank, the CEO had the power to do that. We contacted all nationalised banks and invited offers from them," said Mr 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 Rs 265 crore into Bank of Baroda, five days back," he added.
The Enforcement Directorate on Sunday arrested Yes Bank founder Rana Kapoor.
During the period of the moratorium, Yes Bank will not, without permission in writing of the RBI, make in the aggregate, payment to a depositor of a sum exceeding Rs 50,000.