SBI Shows Interest In Buying 49% Stake In Crisis-Hit Yes Bank: 10 Points
- In a draft reconstruction plan for the crisis-ridden Yes Bank, the RBI on Friday said that SBI has expressed willingness to invest in the private lender and that it will bring in 49 per cent equity. It also said that Yes Bank's capital stands altered at Rs 5,000 crore.
- Meanwhile, addressing a press conference, the Finance Minister said she has asked the RBI look into the difficulties at Yes Bank, the role played by various individuals and prevailing regulatory and supervisory norms. "Have asked RBI to act so that due process of law takes course with a sense of urgency," Ms Sitharaman said.
- Detailing about the riskier lending the bank undertook Ms Sitharman said that the Yes Bank had lent to very highly stressed companies.
- Yes Bank had exposure to stressed Anil Ambani Group, Essel Group, Vodafone, DHFL and IL&FS since prior to 2014, Ms Sitharaman said.
- The Finance Minister added that since 2017, the central bank noticed governance issues and weak regulatory compliance at Yes Bank, besides wrong asset classification and risky credit decisions.
- "A new CEO was appointed as a result and clean-up of the bank commenced from thereon," she said.
- The finance minister assured the depositors that their funds in Yes Bank are safe. "Deposits and liabilities will continue unaffected as before," she said.
- Yes Bank shareholders suffered huge losses in trade on Friday after the central bank imposed withdrawal limit of Rs 50,000. The stock plunged 56 per cent to close at Rs 16.20.
- Long queues of Yes Bank account holders were seen at various branches across the country as people scrambled to withdraw money from their bank accounts.
- Solution being worked on to revive Yes Bank well before the moratorium period, RBI appointed bank administrator Prashant Kumar was quoted as saying by news agency Press Trust of India.
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