Negotiations with nine foreign investors to raise funds in Yes Bank

New Delhi, 09.09 March 2020, Monday

State Bank has held talks with up to nine foreign investors on the issue after raising funds to rescue Yas Bank, which is facing financial difficulties.

To refinance Yes Bank, the State Bank will pay Rs. Announces Rs. However, an estimated Rs. 3 crores will be required. Previous Date On March 7, the Bank introduced a draft for restructuring by the banking regulator.

According to available reports, the State Bank has negotiated with up to nine foreign investors to raise the funds. HDFC also finds interest in investing in Yes Bank.

These foreign investors include Black Stone, Brookfield, Carley Group, TPG, KKR and Goldman Sachs.

In addition, the bank also discussed discussions with Jesse Flowers, Tilden Park, Capital Management and Cerebros Capital.

It is worth mentioning here that Jesse Flowers and Tilden Park presented a non-binding interest to Yes Bank's previous management.

However, it is not yet decided how much money each investor wants to withhold. Anchor Investor as fixed by State Bank and Reserve Bank of Rs. Due to the base price of 2, Yes Bank has become an attractive investment option. A plan is being prepared for the bank which will be submitted to the Reserve Bank soon. In addition to large foreign investors in Yes Bank, local investors are also likely to be interested. Depending on the scheme, YES Bank may prove to be a good investment from the State Bank's perspective.

Many investors have expressed interest in the bank. This investment seems justified at a base price of Rs. Many potential investors contacted us after receiving information about the proposed plan. Many good and large investors have shown interest in the bank.

According to the Reserve Bank's proposed scheme, the State Bank will have to maintain a 3% stake in Yes Bank for at least three years. The State Bank's investment and legal team, which has undertaken a duve diligence on the draft reconstruction scheme prepared by the Reserve Bank, will submit the report to the Reserve Bank on March 7.

According to analyst estimates, the State Bank plans to invest a maximum of Rs. 1 crore in Yes Bank. Which is less than 5% of the amount required to sustain Yes Bank.

According to one estimate, the bank will need at least Rs. Of which 5% will be invested by non-State bank investors.