SBI to infuse Rs 2450 crore to revive Yes Bank
On the Yes Bank crisis, SBI Chairman Rajnish Kumar said on Saturday that the money of depositors in Yes Bank is completely safe. He said that SBI will invest Rs 2,450 crore in Yes Bank. A statement said that 245 crore shares can be issued to State Bank at Rs 10 per share of Yes Bank. Its total value will be Rs 2,450 crore. Rajnish Kumar said that the SBI board has given in-principle approval to take up to 49 per cent stake in Yes Bank. The legal team is working on this plan.
Rajnish Kumar, SBI Chairman: 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 upto 49% in #YesBank pic.twitter.com/e6zxl9siYv
— ANI (@ANI) March 7, 2020
Reserve Bank of India had dissolved the board of directors with immediate effect by increasing the toughness on the private sector Yes Bank on Thursday. Also, the withdrawal limit for the customers of Yes bank was fixed at 50 thousand rupees. Customers will not be able to withdraw more than this in a month. The Reserve Bank appointed Prashant Kumar, the former chief finance officer of SBI, as the new administrator of Yes Bank.
What the finance minister said about Yes bank crisis
Earlier on Friday, Finance Minister Nirmala Sitharaman said on the Yes Bank crisis that many big companies were given loans by the bank long before 2014. All this is already public. She had said that “I am not violating customer privacy in this”. These include the Anil Ambani Group, Essel, DHFL, ILFS, Vodafone among the troubled companies which were lent by Yes Bank. She said that she is disclosing these names because the opposition parties are raising fingers. Sitharaman also said that all this is public and she is not violating the privacy of customers.
Bank in trouble for a long time
The private sector Yes Bank had been grappling with rising debt for a long time. The bank needs two billion dollars to comply with banking rules but has failed to raise the amount despite talks with several investors in the last two years.
Second case after PMC Bank
Six months ago, the Reserve Bank took a similar step in the case of PMC Bank after the big scam surfaced. Then too there where withdrawal limits for customers.
