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Conducting due diligence on Yes Bank restructuring, says SBI chief
On Thursday, the RBI had placed Yes Bank under a moratorium and said it would swiftly work on a revival plan. It also imposed a withdrawal limit of Rs 50,000 on its account holders till April 3.
Yes Bank has the potential to come of the administration soon and resume normal banking function, State Bank of India’s Chairman Rajnish Kumar said Saturday.
“Yes Bank can come out of administration soon,” Kumar told reporters a day after the government unveiled a rescue plan for the crisis-hit Yes Bank under which SBI - the country’s largest lender by assets - will pick up a 49 per cent stake in the private sector lender.
He said SBI has received the plan on Yes Bank restructuring and is conducting due diligence and will revert to the Reserve Bank of India (RBI) by Monday.
“Plan has been received by SBI and the legal team is working on the plan. We had informed through the stock exchange that SBI board has given in-principle approval of exploring possibility of picking up a stake of up to 49% in Yes Bank,” he said.
On Thursday, the RBI had placed Yes Bank under a moratorium and said it would swiftly work on a revival plan. It also imposed a withdrawal limit of Rs 50,000 on its account holders till April 3.
Kumar said many potential investors in Yes Bank have approached the SBI after the government’s bailout plan. He said saving Yes Bank and restoring it to health was a priority.
“Survival of a bank is a must.. the failure of a bank has huge consequences for the economy,” Kumar said and cautioned that the failure of the kind that brought down the Lehman Brothers in the United States in 2008 should not be allowed to unravel in India.
“SBI has size and credibility. We have role to play,” he said.
The total quantum of investment in Yes Bank is at Rs 2,450 crore. Depositors’ money is not at risk, he said.
