Mumbai: State Bank of India (SBI) said it will need to invest Rs 24.5 billion if it were to buy a 49% stake in Yes Bank as part of a rescue deal of the troubled lender.
SBI Chairman Rajnish Kumar told reporters on Saturday the rescue of Yes Bank was a "must," less than two days after the Reserve Bank of India (RBI) took control of the bank and said it would work on a revival plan.
Kumar said the bank has received the draft scheme of reconstruction for crisis-hit Yes Bank and officials are doing due diligence of the scheme.
"We have received draft scheme of reconstruction for Yes Bank. Our investment and legal team is doing due diligence," Kumar told reporters here. He also said many potential investors have approached SBI after seeing the draft scheme.
Kumar further said the interest of shareholders will not be compromised.
On Friday, the RBI announced a draft scheme of reconstruction for cash-starved Yes Bank.
In its draft 'Yes Bank Ltd. Reconstruction Scheme, 2020', RBI 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.
The draft came a day after the RBI imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The RBI also superseded the board of the private sector lender, which is now being headed by former deputy managing director and CFO of SBI Prashant Kumar.
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