State Bank of India (SBI) is all set to pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan. On Saturday, SBI said that they have received the draft scheme of reconstruction for Yes Bank.
Talking about buying stakes in Yes Bank, SBI Chairman Rajnish Kumar on Saturday said the banks legal team is working on the plan. "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 Yes Bank," SBI Chairman said.
He also said many potential investors have approached SBI after seeing the draft scheme. Kumar further said the interest of shareholders will not be compromised. "The total quantum of investment in Yes Bank is at Rs 2,450 crore. Depositors’ money not at risk at all," Rajnish Kumar said.
On Friday, the RBI announced a draft scheme of reconstruction for cash-starved Yes Bank. RBI in its 'Yes Bank Ltd. Reconstruction Scheme, 2020' has said that the strategic investor bank will have to pick up 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion.
The draft came a day after the RBI imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The RBI also superseded the board of the private sector lender, which is now being headed by former deputy managing director and CFO of SBI Prashant Kumar.
(Inputs from PTI)
