SBI-led consortium to buy controlling stake in Yes Bank, announcement likely soon: Sources


PTI, Mar 5, 2020, 3:24 PM IST

New Delhi: The government has approved a plan for a consortium of lenders, led by State Bank of India, to acquire a controlling stake in Yes Bank, highly places sources said on Thursday. An announcement is expected soon, they added.

Yes Bank, which is grappling with bad loans, is looking to raise fresh capital but the plans are facing uncertainties.

It has also delayed announcement of 2019 December 2019 quarter results due to the ongoing crisis.

The bank’s capital buffers have come down due to non-performing assets.

The sources said the government has cleared a plan for a SBI-led consortium to acquire a controlling stake in the bank.

In a clarification to stock exchanges on reports that the government is said to have approved SBI’s plan to buy stake in Yes Bank, the state-owned lender said it would disclose developments, if any, as per Sebi regulations.

“… we will abide by the timelines under Regulation 30 of Sebi (LODR) Regulations 2015 in disclosing the developments, if any in the matter to stock exchanges,” it added.

Yes Bank has been passing through a tumultuous period ever since the Reserve Bank, in August 2018, asked the then chief executive Rana Kapoor to leave by January 31, 2019, amid concerns on governance and loan practices.

Under his successor Ravneet Gill, the lender has disclosed large under-reported stressed assets.

The bank reported its maiden loss in the March 2019 quarter.

Yes Bank had initially planned to raise capital of over USD 2 billion in the current fiscal. Later, its board rejected a USD 1.2 billion investment in the bank by Canadian investor SPGP Group/ Erwin Singh Braich.

Mumbai-headquartered Yes Bank was incorporated in 2004. The bank’s asset size stood at Rs 3,71,160 crore at the end of June 2019.

Promoters of Yes Bank — Madhu Kapur, Yes Capital (India) Pvt Ltd and Mags Finvest — hold 8.33 per cent stake in the crisis-ridden bank, as per data available on the stock exchanges.

The bank’s co-founder Rana Kapoor has sold his entire stake in the bank.

Besides, foreign portfolio investors hold 15.17 per cent stake, state-owned LIC has 8.06 per cent, and mutual funds own 5.09 per cent.

Shares of Yes Bank rose nearly 22 per cent to Rs 35.60 apiece in late afternoon trade on the BSE.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Will appear before Lokayukta for questioning in MUDA case, says CM Siddaramaiah

Lies have short life, Cong’s ‘fake’ narrative smashed: Fadnavis

Temple idols found desecrated in Hyderabad, case registered

SC junks plea against quashing of LOC issued to ex-house help of Sushant Singh Rajput

JPC chairman Jagdambika Pal to visit K’taka on Nov 7 to meet farmers protesting Waqf notices

Indian boxer Mandeep Jangra wins WBF’s world title

IOA submits ‘Letter of Intent’ to host 2036 Olympics in India

Related Articles More

CBDT allows tax officials to waive or reduce interest due from assessee

Markets fall in early trade amid unabated foreign fund outflows

New software for fast-tracking project approvals: Karnataka Minister Patil

In-flight passengers can access WiFi services only when allowed, say new rules

SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Clash between 2 groups leads to stone pelting at temple in Delhi’s Jahangirpuri

CBI forms SIT to probe into Tirupati laddu adulteration allegations

Bengaluru airport collaborates with Echoes of Earth festival for 5th consecutive year

Ex-PM Gowda jumps into campaign fray, seeks support for grandson in Channapatna bypoll

Will appear before Lokayukta for questioning in MUDA case, says CM Siddaramaiah

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.