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Yes Bank problem bank-specific, not sectoral: SBI chief Rajnish Kumar
On SBI picking up a stake in Yes Bank, Rajnish Kumar said the lender already has an in-principle approval for doing so.
A day after the RBI superseded the board of India’s fourth-largest private sector lender Yes Bank, State Bank of India (SBI) Chairman Rajnish Kumar on Friday said the problem at hand is lender-specific and not sectoral.
On Thursday, the SBI board gave its “in-principle” approval to exploring investment opportunities in Yes Bank.
“The RBI has said they will come out with a restructuring plan (for Yes Bank),” Kumar told reporters after meeting Finance Minister Nirmala Sitharaman.
The resolution will come “very shortly,” he said without elaborating.
The Reserve Bank on Thursday placed Yes Bank under a moratorium and imposed limits on withdrawals.
“This is not a sectoral problem. It is a bank-specific problem,” he said. “The RBI will take all steps to ensure financial stability.” On SBI picking up a stake in Yes Bank, he said the lender already has an in-principle approval for doing so.
“If SBI has to pick up a stake in Yes Bank, we have an in-principle approval for that,” he said.
The RBI has capped withdrawals from Yes Bank at Rs 50,000 for the next one month and imposed strict limits on operations after the cash-starved lender faced “regular outflow of liquidity” after an effort to raise new capital failed.
