YES Bank share price climbs 31% on SBI rescue

The scrip jumped as much as 30.86 per cent to Rs 21.20 against the previous close of Rs 16.20.

PTI
The state-owned bank is also said to be in talks with Tilden Park, JC Flowers and Cerberus Capital, some of which the previous management had been negotiating with.
Shares of YES Bank advanced as much as 31 per cent in Monday’s trade after reports that State Bank of India (SBI), which needs to come up with equity investment of over Rs 20,000 crore to save the bank from collapse, is in talks with more than half-dozen potential investors.

They include Blackstone, Brookfield, Carlyle, TPG, KKR and Goldman Sachs.

The state-owned bank is also said to be in talks with Tilden Park, JC Flowers and Cerberus Capital, some of which the previous management had been negotiating with.


It could not be ascertained how much each investor is willing to chip in. Some state-owned institutions may also participate, according to a report by ET. Housing Development Finance Corp (HDFC) is also said to be interested in investing in the bank; the mortgage lender didn’t respond to queries.

Last August, its asset management arm bought YES Bank shares at around Rs 83.55 apiece in a qualified institutional placement (QIP). SBI didn’t respond to queries.

The RBI on Friday also said the State Bank of India (SBI) has expressed willingness to invest in crisis-ridden YES Bank.
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In the draft ‘YES Bank Ltd. Reconstruction Scheme, 2020’, the RBI also said the strategic investor bank will have to pick up 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion.

From the appointed date, the authorised capital of the private sector bank would stand altered to Rs 5,000 crore and number of equity shares to Rs 2,400 crore, having face value of Rs 2 each.

“The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post infusion it holds 49 per cent shareholding in the reconstructed bank at a price not less than Rs 10 (face value of Rs 2) and premium of Rs 8," said the draft on which comments from stakeholders have been invited till March 9.

The shares of the lender closed 31.17 per cent higher at Rs 21.25 on BSE.
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