It is difficult day for the financial markets and it is a difficult day for the economy when a large institution is put into moratorium, a large bank like Yes Bank.

The government and Reserve Bank of India (RBI) have acted in the best way to structure a solution for Yes Bank, said Aditya Puri, MD of HDFC Bank. “The government and RBI have assured the depositors that there will be no loss to them. Also, appropriate steps have been taken for normal functioning of the money market and therefore ensuring system stability. he said, adding that moratorium of a large bank is something to be concerned about, but I do believe that the actions taken will ensure that the interest of the depositors are covered. They have also made the statement that cheques of all of Yes Bank's depositors will be honoured, he said.

According to him, the restructuring of Yes Bank will happen much before April 3, which is in everybody's interest.

“As far as risk aversion is concerned, there are enough good opportunities available to lend to good companies, or to buy good stocks that you don’t have to go down the ladder,” he added.

When asked what according to him would be an appropriate response to this development, he said, “I believe what the RBI governor said that it will be resolved very quickly, which means that they have a clear plan of action and they have been saying that. I do not want to add my two bits into that but I am very confident that a clear plan of action ensuring systemic stability and resolution on Yes Bank together with protection of depositor interest will come through very fast,” he added.