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SBI is going to rescue Yes bank  | Yes bank latest news

SBI is going to rescue Yes bank | Yes bank latest news

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State bank of India is going to rescue Yes Bank by picking up 49% in private lender Yes Bank for an initial investment of Rs 2450 crore.

SBI is going to rescue Yes bank  | Yes bank latest news

Headlines:

  • Rs 50000 withdrawal limit set by bank
  • 5 lakh limit for emergency cases
  • Moratorium period is one month
  • SBI's chairman says money will be safe
  • Customers are facing problem because of this


YES BANK LATEST NEWS:

SBI's chairman Rajnish Kumar said on Saturday that State bank of India is all set to pick up 49% in private lender Yes Bank for an initial investment of Rs 2450 crore. Kumar also added that the bank was in talks with several investors and its investment in the bank could go up to substantially depending on the interest.

Rajnish Kumar explained that, "Currently, there are 255 crore shares of YES Bank and as per the draft scheme, SBI can take up to 49% stake. Today, if the State bank of India goes solo and picks up 49% stake, then the immediate investment requirement is Rs 2450 crore.”


Rajnish Kumar further explained presuming that if the bank required Rs 20,000 crore immediately and it manages to get other investors, then the bank would hold 26 percent in Yes with an investment of Rs 5000 crore. As per the Reserve bank of india's draft scheme the state-owned lender is required to hold 26 percent in Yes Bank for at least three years.

Kumar said that,"Many potential investors have approached us after seeing the scheme, there are some very good names,”. He also added that “What we have to keep in mind for the co-investors is a couple of things, any investor looking to invest beyond 5 percent will have to meet RBIs fit and proper criteria, if they are foreign investors they have to meet the FPI guidelines.”

The RBI has come up with a restructuring plan to give a new life to Yes Bank that would entail equity investment by the SBI, but that would keep these entities separate leaving scope for the state-run lender to exit the investment when it turns profitable.

The central bank on Thursday imposed a moratorium on Yes Bank that capped deposit withhdrawals at Rs. 50,000 per person, however, if there are any kind of emergencies like medical needs, payment for higher education or marriage expenses then the customer can withdraw upto 5 lakh.


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