In SBI Yes Bank, Rs. It will buy 49% stake at a price of Rs 2,450 crore

New delhi date. March 7, 2020, Saturday

State Bank of India (SBI) will pay Rs. Bank chairman Rajneesh Kumar said on Saturday that it would buy 49% stake in Yes Bank for Rs 2,450 crore. He clarified that the bank's restructuring responsibilities and deposits would continue to be 'equally'.

SBI's initial investment in Yes Bank will be Rs 2450 crore. Yes Bank has 255 crore shares, if SBI buys a 49% holding, the instant investment will be Rs 2450 crore.

State Bank of India (SBI) has received a draft scheme for the restructuring of the private sector Yes Bank in the crisis and the bank's legal team is examining the scheme, State Bank of India Chairman Rajneesh Kumar said. State Bank of India has set a maximum limit of Rs 10,000 crore for investment in Yes Bank, he said.

Addressing reporters here today, State Bank of India Chairman Rajneesh Kumar said, "The SBI has got a draft scheme and the legal team is working on it."

The bank has reported through the stock exchanges that the SBI board has received theoretical approval to test the possibility of acquiring a holdings of up to 49% in Yes Bank. The State Bank's investment team is currently analyzing Yes Bank's balance sheet and will visit the State Bank of India Reserve Bank of India by March 9, 2020.

The SBI chairman said there was no friction of interest in the holding of the Yes Bank. A new board of Yes Bank will be formed and there will be two representatives from SBI.

With this, he said that after seeing the draft scheme, many potential investors have approached SBI. In the draft scheme, SBI will be the investor bank and the bank will buy a holding of Rs 10 per share in Yes Bank.

RBI has sought comment from YES Bank members, depositors and lenders on March 9 through the draft scheme. To provide immediate financial support to Yes Bank, the Reserve Bank of India (RBI) is preparing to provide a special liquidity window to ease the concerns of bank depositors.

This chapter will provide the Reserve Bank of India with Rs 8000 crore to Rs 10,000 crore as short-term loans or line of credit, in view of the complex issues surrounding it. Residents of Yes Bank can be sure that with this amount, the bank's holders can withdraw money as per the exemption granted to them, sources said.

Since this is a special case, the interest rate will be very low. The phenomenon of providing liquidity to a private bank under stress is rare. However, the Reserve Bank alone has a provision to provide such liquidity under section 17, sources said.