Highlights : Addressing a press conference in Mumabi, SBI Chairperson Rajnish Kumar said the SBI Board has given an “in-principal” approval to pick up 49 per cent stakes in Yes Bank.
Two days after the Reserve Bank of India (RBI) placed capital-starved Yes Bank under a one-month moratorium and capped the monthly withdrawal limit for depositors to Rs 50,000 per account, the State Bank of India (SBI) today said it is likely to pick up 49 per cent stakes in Yes Bank.
Addressing a press conference in Mumbai, SBI Chairperson Rajnish Kumar said the SBI Board has given an “in-principal” approval to pick up 49 per cent stakes in Yes Bank.
In terms of investment, the SBI-India’s largest lender-is likely to invest at least a sum of Rs 2,450 crore in Yes Bank.
“The plan has been received by SBI and the legal team is working on the plan. We had informed through the stock exchange that SBI board has given in-principle approval of exploring possibility of picking up a stake of up to 49 per cent in Yes Bank,” Rajnish Kumar said.
The SBI chairperson also said, “There are many potential private equity investors , there some good names , we are looking at co-investors . There are certain regulatory norms for anybody who wants to go beyond 5 per cent (stakes). But there is considerable investor interest.”
He however said the final decision on the percentage of stake the SBI will pick up in Yes bank and the amount it will invest will be taken by the SBI Board.
“Our effort is to ensure the resolution plan is approved and implemented before the time set by RBI. It is matter of few days and depositors should not worry about safety of their money,” Rajnish Kumar said.
He also assured SBI depositors and investors that they need to worry because of this decision. “Our capital ratio will not be impacted,” he said.
“We have to keep in mind that any bank failure has huge consequences. So SBI standing behind Yes Bank makes a difference. Any enterprise, irrespective of ownership, is national asset. As the country’s largest bank, we have a role to play. For individuals’ mistakes why should an institute suffer?” he said.