In February, 82-year-old Kishan Lal appealed to India's finance minister for help, saying in a Twitter message he was ready to donate his kidney and eyes if someone could help arrange funds to treat his daughter, who had a brain tumour.
The withdrawal cap has left many of PMC's over 900,000 depositors in deep difficulty. Some say they are struggling to clear loans or pay their children's school fees, while others say they depend on friends for their groceries.
"They lend to riskier borrowers who have higher chances of defaulting due to the pandemic," said Jignesh Shial, a banking analyst at brokerage Emkay Global. The finance ministry told the court the government had not infused any funds in Yes Bank but it was investors and the SBI who came to its rescue, according to court documents. SBI is 57per cent government owned.Noting PMC depositors were in a"dire state", the court said the RBI and the finance ministry played a crucial role in rescuing Yes Bank and asked them both to"delve into the aspect" of why PMC depositors were differently treated.
Asked for further comment, the finance ministry referred Reuters questions to the RBI, which did not respond.Set up in 1984, PMC is a regional lender with 137 branches across six states and by last year it had deposits of US$1.5 billion. Yes Bank is far bigger with more than 1,000 branches across India.