SBI working on Yes Bank's reconstruction scheme, says bank chief
State Bank of India Chairperson Rajnish Kumar on Saturday said that the bank has received the draft scheme for the reconstruction of the crisis-hit Yes Bank. Kumar said that legal teams are already working on the reconstruction scheme. Yes Bank was placed under a 30-day moratorium by the Reserve Bank of India on Thursday as the lender failed to raise new capital.
Total investment in Yes Bank Rs. 2,450 crore: Kumar
Speaking to reporters in Mumbai, Kumar said, "We have received the draft scheme of reconstruction for Yes Bank. Our investment and legal team is doing due diligence." He said that many potential investors have approached SBI, India's largest lender, after seeing the reconstruction scheme for Yes Bank. He said that the total quantum of investment in Yes Bank is at Rs. 2,450 crore.
Kumar gave assurances to SBI investors, depositors
Allaying fears, Kumar said that the interests of SBI shareholders will not be compromised. He added that SBI depositors will also not be adversely affected by the bank's investment in Yes Bank. Earlier, the SBI had given an in-principle nod to investing in Yes Bank.
SBI to pick up 49% stake in Yes Bank
The 'Yes Bank Ltd Reconstruction Scheme, 2020' lists that the investor bank shall agree to pick up 49% stake in Yes Bank for not less than Rs. 10. The investor bank shall also not reduce its holding below 26% for three years from the date of capital infusion. The scheme states that the SBI has "expressed its willingness" to invest in Yes Bank.
What is the Yes Bank crisis?
The RBI on Thursday imposed a 30-day moratorium on cash-starved Yes Bank, limiting cash withdrawals at Rs. 50,000. The move came as the Yes Bank delayed its third-quarter financial results amid a steady decline in its financial health. The RBI also superseded the bank's board and appointed former State Bank of India CFO Prashant Kumar as the bank's administrator for the next month.
Depositors' interests considered while imposing moratorium: Prashant Kumar
On Friday, Prashant Kumar said in a statement, "The current moratorium has been brought into effect keeping the depositors' interest in mind and towards restoring their confidence. A solution is being worked upon to revive the bank well before the moratorium period of thirty days ends." Yes Bank also said, "The bank is also taking necessary steps to ensure seamless transactions for the customers."
