There are B.

I also superseded yes, Bank's board, Joining us now to talk about the implications.

Independent banking analyst emitter Has Ari thanks very much for taking out the time Quick comment, obviously.

You know, lots been spoken about the protection of depositors and nothing's going affect them in any negative fashion.

But just the fact that you know what is one?

Now, look, how does one look at the P S U entities now that every time there's a private bank or a private entity that goes into trouble, there is a possibility that the P S u maybe I'm twisted to come and bail it out.

But you see, this is the economic model that we have adopted, that when there are profits in the private sector, goes to share older than when their losses, they have to be bought by the taxpayer.

That is the economic model that so far has the water it is dear on.

Therefore, normally, you'll find that for shareholders, there's lot of upside and very limited downside off course.

In this case, it appears on very right, so that the shareholders of years.

Bank will not get anything and should not get anything.

At least a little place.

You have to see whether you know the depositor library.

Things will be met.

So I think this is the state veterinarian.

The nominees in very poor shape the banking sector, the reflection on the economy.

There's beena CDs off mismanagement at yes, bank and other banks in India.

It is most unfortunate that the boards, the auditors, that regulator, business media, the analyst community has not called it out when it should.

On today.

And Hyun before this moratorium on the banquet Don't.

Everybody was coming and being critical of the bag.

My question is should have been criticizing the banquet.

Rana Kapoor was in charge of that time.

The media was giving this bank best bank awards.

This banker of the year awards that still has bean.

What happens now, though?

I mean, one is yes, bank.

I heard you mention that he has bank.

Could Cheryl's could get nothing.

You reckon that That's the way the stock is headed as well.

The most Definitely It has to be the lead right?

Then why should anyone be late?

Okay, the minute the shareholders that the shareholders that should have been out of the very fact that today share all those themselves are not willing to be loud and get the required fronts for this bank s.

So therefore, you know, that is whether I'll be a stick in the decision because it appears that the losses are far in excess of what the last reported numbers have have informed us right now.

Mind you, in my opinion, huh?

I thought the bank has to be bored with another larger entity.

All the depositors have to take a hit, which so far, you know, in the commercial bank that has not been done.

But this idea that he can survive as an independent and 30 if you get certain prominent names like State Bank of India life, see what it was a lot of private banks to take an equity stake on that will revive you know, shareholder confidence.

I think by now that time has gone by that I mean, I'm saying the army has already said that depositors money safe, so likely that maybe that implication is out.

But then therefore, that brings the larger question that one Do you think that the market is even possible and him in the park, too.

What does this do for state bank off India?

Because this is not as bad as what people would have earlier thought.

That it will be forced to march.

It's now taking arguably taking a stake.

Is it a case of glass?

Are polar glass half empty?

That's the point I'm coming to today, in my view, Anyone taking a stake in this bank?

It is not going to solve the problem for yes bank because the largest the bank survives on its deposit franchise.

The moment the government and the Arab is announced the moratorium, it has lost its deposit franchise because as soon as the moratorium is lifted, more depositor will wantto keep his funds there.

Because I should.

Even now, he's restricted for me withdrawing or ₹50,000 maximum 500,000 you know, yesterday.

So a lot of paperwork, so that depict the moment the government of the regulator announces a moratorium that because it franchise off that entity in my opinion seasons to exist, therefore it cannot survive in a as an independent entity.

You're just naturally loses deposits, Sanchez immediately assume that the moratorium is discredited.

Independent entity.

All the depositors are going to start pulling out their friends.

This is what people have to realize.

The bank.

Yeah, and obviously the fact that you know they are gonna be putting in some money If it all comes as a stake by what happens to further capital raising if they do need it at some point, because the money and that they're going to get probably if it is a steak buy will be at a much lower valuation, and that will not be sufficient for them to continue.

Continue with operations.

Is an independent bank having stakeholders like as we are Blasio, Whichever other investors coming to pick up stick.

So the viability and the business longevity gets questioned.

Very true.

But the point is, it was not just a called it in a bank.

It's not shareholders shareholders a minority stakeholder because of debt equity being seven day Mr One, it is the deposit franchise on which a bank, you know, survives.

And if you take that away when you have a more accordion, your deposit Francis is over.

No one more depositor is goingto trust that entity again.

You may say that all now because his B s coming.

Therefore it'll attract read me, attract other equity investors.

But the deposit is going to run away naturally, you know.

Why should?

Because now he's been district.

It's a moment of distinction that off he's going to pull out his money.

So therefore the only so you should for this is to protect depositors.

Money is to merge it with another bank.

I don't see.

Yes, thanks.

Arriving now as an independent entity, you make it a beer, you get a life.

But I just come back to my previous question.

Then what about State Bank off India?

How do you view this decision from my V?

A shareholder's perspective.

Forman is special.

This prospector does negative.

Okay?

I just want to be usually negative.

50.

Call all the liabilities of interest taken part of the life is it still will be in sync.