India imposes moratorium on fourth-largest private bank
Coronavirus isn't necessarily the world's biggest economic worry. The bigger worry is that it will expose vulnerabilities.
The Reserve Bank of India just announced a moratorium on Yes Bank, a takeover for 30 days and suspended the board. They cited a deterioration in the financial position. It's not a huge surprise as the company has been in a death spiral since 2018.
Today the share price jumped to 36 rupees but it will be taken over at 2 rupees per share by SBI and LIC, according to local reports.
Indian growth is at an 11-year low and confidence is quickly eroding. Consensus growth this year is now 5.0% but it's likely about to get worse.
Today India reported its 30th coronavirus case after 14 were discovered yesterday among Italian tourists. The government announced the shutdown of primary schools in Delhi until March 31.
Congress leader Rahul Gandhi today tweeted: The Health Minister saying that the Indian Govt has the #coronavirus crisis under control, is like the Capt of the Titanic telling passengers not to panic as his ship was unsinkable. It's time the Govt made public an action plan backed by solid resources to tackle this crisis".
India's huge population, poor public health and woeful healthcare system make coronavirus there a dire scenario. If there are underlying vulnerabilities, it could quickly come crashing down.