State Bank of India, Yes Bank clarify on stake buy news, here’s what banks said

By: |
March 5, 2020 3:02 PM

State Bank of India and Yes Bank have issued a clarification on the news report claiming that the government has approved a plan for SBI to buy an equity stake in the private lender Yes Bank.

SBi, yes bank, state bank of indiaState Bank of India in its clarification mentioned to abide by the timelines in disclosing the developments, in case there is any to the stock exchanges

After the news surfaced claiming that the government has approved a plan for State Bank of India (SBI) to buy an equity stake in the private lender Yes Bank, both the banks have issued a clarification. It was also reported that the government has given nod to India’s largest bank SBI to lead the consortium to bail out Yes Bank, and choose other partners in the consortium. Yes Bank in its clarification has said that it has not received any communication from the Reserve bank of India in this regard. “We would like to clarify that as on date, the Bank has not received any such communication from RBI or any other the Government or Regulatory authorities or from the SBI and we are unaware of any such decision. Therefore, we are not in a position to comment on such news item,” the bank said in a clarification submitted to the stock exchange.

Following the news in the morning, Yes Bank share price surged as high as 29 per cent to Rs 37.90 apiece on BSE. However, SBI share price slumped up to 5 per cent, but soon recovered over 10 per cent from day’s low to swing back to green. Around 3 PM, Yes Bank shares were trading 22 per cent higher at Rs 35.75 apiece, while shares of SBI were ruling at Rs 289.55 apiece, up 1.49 per cent.

On the other hand, State Bank of India in its clarification mentioned to abide by the timelines in disclosing the developments, in case there is any to the stock exchanges. “We advise that 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. This is for your information and appropriate dissemination,” India’s largest bank SBI said in its clarification.

Recently, Yes Bank received non-binding expressions of interest (EoI) from investors including JC Flowers, OHA UK and Silver Point Capital. The debt-stressed private lender had plans to raise up to $2 billion to shore up its capital base.

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