The Reserve Bank of India (RBI) on Friday said the State Bank of India (SBI) has expressed willingness to invest in crisis-ridden Yes Bank. In a draft reconstruction scheme for the private lender, the central bank also said that the investor bank shall invest in Yes Bank to the extent that it will hold 49 per cent equity after the infusion.
A day after the RBI suspended Yes Bank’s board for a period of 30 days and imposed a withdrawal limit of Rs 50,000 on its account holders till April 3, Finance Minister Nirmala Sitharaman said that governance issue at Yes Bank is a matter of concern, adding that deposits and liabilities of the bank will not be affected. “It is not that the Yes Bank matter has come up yesterday or today; I would like to place it on record that RBI has been consistently monitoring situation since 2017,” Finance Minister said. She has asked RBI to act so that due process of law takes course with a sense of urgency, Sitharaman added.
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,” Sitharaman said.
Detailing about the riskier lending the bank undertook 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, Sitharaman said.
