Rajnish Kumar explained how SBI will infuse capital in Yes Bank as the obligation is to at least invest 26% of the capital required.
SBI Chairman Rajnish Kumar today said that failure of a bank has a huge effect on the financial market and SBI is standing behind it and will ensure financial stability. He has assured that the State Bank of India will work overtime and 24×7 to get the resolution plan approved and implemented much before the moratorium period of Yes Bank gets over. He said that there are many potential investors after seeing the draft scheme proposed by RBI and they have approached us and there are some good names as well. He also explained how SBI will infuse capital in Yes Bank as the obligation is to at least invest 26 per cent of the capital required, which can go up to 49 per cent.
Addressing a press conference, Rajnish Kumar also said that Yes Bank will run completely independently and there is no way SBI will be involved in day-to-day activities. He further said that he believes Yes Bank can very quickly come out administration and stand on its own feet. The State Bank has also sent an important message to its shareholders that the interest of the SBI shareholder will not be compromised.
Speaking about the Jet Airways case, Rajnish Kumar said that SBI tried its best to save the airline company but due to circumstances, it could not be revived. He also mentioned is nothing harms SBI’s interest and SBI doesn’t face any problem as a creditor, SBI won’t mind helping Vodafone-Idea as well.
The RBI had proposed a reconstruction plan for Yes Bank yesterday, which said that SBI can acquire a 49 per cent stake in Yes Bank at a minimum of Rs 2,450 crore. The draft also proposed to increase the bank’s authorised capital from Rs 800 crore to Rs 5,000 crore and increase the number of equity share to 2,400 crore from 255 crore. Also, the draft mentioned that SBI shall not reduce its holding below 26 per cent for three years from the date of capital infusion.