Yes Bank Rescue Plan Being Readied, Meeting Reserve Bank of India On March 9, Says SBI Chairman Rajnish Kumar

It will a working weekend for the team at the State Bank of India as it gets cracking on the rescue plan for the embattled Yes Bank. India’s largest bank in terms of market capitalisation, the State Bank of India is set to meet the Reserve Bank of India on March 9 i.e. Monday to present the game plan that may salvage the biggest financial crisis that India has seen in 2020 so far. Addressing media in Mumbai, State Bank of India’s chairman Rajnish Kumar said that, “several potential investors have approached us.” Negating the general perception, Kumar said that the investors have shown interest on troubled institution also. The SBI boss said that 23 Expressions of Interest for Yes Bank have been received so far.

Understand The Numbers 

“As per draft scheme, which is already in public domain, we can invest 49 per cent in Yes Bank. However, 26 per cent for 3 years is an obligation. The total quantum of investment in Yes Bank is at Rs 2,450 crore,” Kumar said. Total collapse of India’s fourth largest private bank needed to be averted, the SBI chairman stressed. “Survival of Yes Bank important to control contagion,” Kumar said. 

“Investment team look at the balance sheet of Yes Bank. Will work 24/7 to get the resolution plan approved. Depositors money is not at all at risk. SBI shareholders' interest won't be compromised,” the SBI chairman further said. Ruling out any help from the government, Kumar said that there was “no question of asking capital from the government.” 'I wish there were not many times where SBI didn't have to step in as a troubleshooter,' Kumar said. Quashing all speculations, Kumar added, "I had said that there is no question of merger of Yes Bank with SBI and I stand by it."

Meanwhile, the searches at the Mumbai home of yes Bank founder Rana Kapoor continued for the second day also. The Enforcement Directorate team is conducting the raid in connection with a money-laundering case. There are reports that a ‘Look Out’ notice has also been issued against Kapoor. After the RBI placed a Rs 50,000-moratarium on the withdrawals form Yes Bank accounts and superseded the Board, rumours were rife that Rana Kapoor has left India. However, Kapoor in multiple media interviews reiterated that he was very much in the country. “Mumbai is home,” Kapoor had said in an interview to moneycontrol.com.

(With agency inputs)