After the government approved a plan for the largest lender State Bank of India to lead a consortium to buy a stake in YES Bank, the shares of YES Bank surged over 29% during Thursday's market session. However, shares of SBI fell by 4% after the development.
The government has authorised SBI to pick other members of the consortium, reported Bloomberg. Reports also said that the announcement regarding the consortium is expected to be announced soon.
YES Bank's stock, in the last five days, has lost over 20% and has declined by 86% in the past one year.
For quite some time, YES Bank has been struggling to raise capital to float above the requirements amid the bad loans it has been experiencing in the troubled sectors. It has been trying to raise $1.2 billion to stay afloat since the past two quarters.
