State Bank of India (SBI) chairman Rajnish Kumar on Saturday said, the bank had received the draft scheme for the reconstruction of troubled private lender YES Bank and a legal team was evaluating the plan and due diligence is underway. He also said that the SBI has set an upper limit of Rs 10,000 crore for investment in YES Bank.
“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 per cent in YES Bank,” Kumar said
Kumar said that an investment team is analysing the balance sheet of the troubled private lender and SBI would go to the Reserve Bank of India (RBI) by March 9. The SBI chief has also said that the initial investment in YES Bank will be Rs 2,450 crore.
“There are 255 crore shares of YES Bank, If SBI takes up to 49 per cent stake, then the immediate investment requirement is Rs 2450 crore,” Kumar added.
Speaking at a press conference, Rajnish Kumar added that many potential investors have approached SBI after seeing the draft scheme.
Kumar denied any conflict of interest on picking up stake in YES Bank. He also assured YES Bank’s depositors that their money is safe.
Kumar added that a new board of YES Bank would be constituted and it would have two nominies from SBI.
The RBI on Friday presented a reconstruction plan for the troubled private sector lender under which SBI will pick up a 49 per cent stake in YES Bank. 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 draft scheme, mentioned SBI as the “investor bank” and said it would pay at least Rs 10 per share for buying equity in YES Bank. The RBI has invited comments on the draft scheme from members, depositors, or creditors of YES Bank Ltd and will accept them till March 9.