Everyone knows what happened with the yes bank. To make it easier for you. Like most banks in India, Yes Bank faces a crisis of non-performing assets, i.e. loans that have either gone bad or where repayments have been delayed for too long. Partly due to this, Yes Bank’s capital eroded. For the last several months, the bank has been hunting for cash in the form of fresh investment.
Late Thursday night, news broke that the Reserve Bank of India had placed Yes Bank under moratorium. What this meant was that Yes Bank customers could withdraw only up to Rs 50,000 from their accounts for the next month. The Rs 50,000 per Yes Bank account cap will be waived in certain situations where the withdrawal cap will not apply, subject to RBI approval.
Now the question is that. Is your deposit safe in your banks?
To answer this we need to understand something called MCAP (Market Capitalization). This is the health parameter for a successful bank in the market.
What is Market capitalization?
It is the total valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by multiplying the current market price of the company’s share with the total outstanding shares of the company.
Doing this calculation your bank will have a score.
0 – 2.5 % -Healthy
2.5 – 4 %- Comfortable
4 % & Above – Risky
Now check where your bank stands.
Banks | M-Cap Ratio as of 2019* |
Kotak Mahindra Bank | 0.83 % |
HDFC Bank | 1.43 % |
RBL Bank | 2.23 % |
ICICI Bank | 2.34 % |
Indus Ind Bank | 2.36 % |
Axis Bank | 2.55 % |
Federal Bank | 6.16 % |
Yes Bank | 8.96 % |
Karur Vyasa Bank | 10.92 % |
Karnataka Bank | 23.34 % |
Dhanalakshmi Bank Ltd | 25.94 % |
South Indian Bank Ltd | 34.74 % |
