Addressing a press conference on Saturday, State Bank of India Chairman Rajnish Kumar revealed that the SBI wants to pick a 49% stake in Yes Bank. Mentioning that the draft reconstruction plan had been unveiled by the RBI, he said that SBI's investment and legal team of SBI is conducting due diligence on it.
Thereafter, Kumar stated that the SBI would get back to the RBI with its comments before the March 9 deadline. On Thursday, the RBI imposed a 30-day moratorium on Yes Bank, restricting the withdrawal limit for customers to Rs.50,000.
SBI Chairman remarked, “The draft scheme of Reserve Bank of India for the reconstruction of Yes Bank is already in the public domain. The plan has been received by the State Bank of India. And, our investment and legal team is doing due diligence on the draft scheme. There is a time given until Monday for us to go back to the Reserve Bank of India with our comments. Second is, we had informed the stock exchange that the SBI Board has given in-principle approval to explore the possibility of picking up a stake up to 49% in Yes Bank. As per the draft scheme, once we have completed our due diligence, we will go back to Reserve Bank of India with our comments.”
Kumar explained the obligations that are a part of the draft scheme. He declared that the SBI would make an initial investment of Rs.2,450 crore in Yes Bank. In response to a specific question asked by Republic TV regarding the ED raids on Yes Bank founder Rana Kapoor, the SBI Chairman replied that an individual was different from an entity. He refuted the notion that the raids would have an impact on SBI’s investment in Yes Bank.
“Currently, there are 255 crores shares outstanding. And as per the draft scheme, SBI can take up to 49%. The only requirement is that there is a lock-in of 26% for three years. So, it sets in a way the boundary. So, minimum 26% for three years. That is a sort of obligation that is part of the scheme. Anything apart from that, up to 49% depending upon what is the interest from other investors, what is the total capital requirement, the bank’s investment would be determined,” the SBI Chairman opined.