Live
- Border-Gavaskar Trophy 2024-25: Australia’s assistant coach Daniel Vettori to miss first Test for IPL mega auction
- Maha polls: BJP’s ‘chota popat’ jibe in response to Congress ‘safe’ attack
- AM Green Kakinada Cluster Joins the World Economic Forum.
- 3 elephants electrocuted in Sambalpur
- Elevate Your Style: Handpicked Luxury Fashion & Accessories
- Ola Electric users continue to cry amid poor service, software glitches nationwide
- Panchayat Raj AE Panduranga Rao caught by ACB while taking a bribe of Rs 50,000.
- Leveraging Data and Analytics for Product Management Excellence: Mahesh Deshpande’s Approach
- Two vegetable varieties of Himachal varsity get national recognition
- Border-Gavaskar Trophy 2023-25: Bowling coach Morne Morkel says Mohammed Siraj is a legend, has a big heart and aggressive mindset
SBI comes to rescue of Yes Bank
State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. A day after imposing moratorium on Yes Bank and restricting withdrawals, the RBI on Friday evening issued a draft reconstruction scheme for the private sector lender and said SBI has "expressed its willingness" to make an investment.
New Delhi: State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. A day after imposing moratorium on Yes Bank and restricting withdrawals, the RBI on Friday evening issued a draft reconstruction scheme for the private sector lender and said SBI has "expressed its willingness" to make an investment.
Earlier in the day, SBI Chairman Rajnish Kumar met the finance minister. A former SBI CFO has already been appointed administrator of the Yes Bank, whose board has been superseded. "The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post infusion it holds 49 per cent shareholding in the reconstructed bank at a price not less than Rs 10 (Face value of Rs 2) and premium of Rs 8," as per the RBI proposal.
SBI has already obtained an 'in-principle' approval of the board to explore investment opportunity in Yes Bank. From the appointed date, the authorised capital of the private sector bank would stand altered to Rs 5,000 crore and the number of equity shares at 2,400 crore having face value of Rs 2 each.
Earlier in the day, RBI Governor Shaktikanta Das said Yes Bank resolution efforts are aimed at maintaining "stability and resilience" in the Indian financial sector and the difficulties will be overcome "very swiftly". The 30-day moratorium deadline is an "outer limit", he said at a banking event in Mumbai, reiterating that the interest of depositors will be "fully protected".
He also defended the timing of the move as "appropriate", saying Yes Bank was unable to come up with a solution despite being given time for internal resolution. Yes Bank has been struggling to raise capital. It sought to raise $2 billion initially during this fiscal, which was then pruned to $1.2 billion as it could not rope in any investor. Also, the bank had deferred announcement of its financial results for the third quarter ended December. The bank had told stock exchanges that it will publish the same on or before March 14, 2020. Stock of Yes Bank plunged by over 80 per cent during intra-day trade on BSE and closed 56.04 per cent down at Rs 16.20 apiece.
