The government has approved a plan for the largest lender State Bank of India to lead a consortium to buy a stake in Yes Bank, reported Bloomberg.
SBI has also been authorized to pick other members of the consortium reported Bloomberg. The announcement regarding the consortium is expected to be announced soon.
Now, shares of Yes Bank has jumped by 9.56% at Rs 32.10 on BSE. However, shares of SBI fell by 3.01% to Rs 276.70.
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.
Earlier, the bank had said that there will be a delay in posting the December ended quarter results by a month.
Constraints on capital had forced the private sector bank to shrink its book in the September quarter. The bank has been going through a tumult for the last one year since the RBI forced the exit of its promoter and CEO Rana Kapoor in August 2018.
(With inputs from Agencies)
