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Cabinet may take up Yes Bank revival plan on Friday

Yes Bank crisis: RBI Governor Shaktikanta Das had also met SBI chief Rajnish Kumar on Friday to discuss the way to rescue the bank

twitter-logoBusinessToday.In | March 12, 2020 | Updated 15:59 IST
Cabinet may take up Yes Bank revival plan on Friday
Yes Bank crisis: The bank is under moratorium till April 3

The central government may approve Reserve Bank of India's (RBI) revival plan for Yes Bank by Friday. After examining the comments on RBI's reconstruction scheme, the RBI may modify the provisions and send it for the central government's approval. The Centre might also approve the scheme without any modification.

According to a report in Business Standard, RBI's reconstruction scheme will be up for approval of the Union Cabinet, chaired by Prime Minister Narendra Modi on Friday. The apex bank has also invited comments from State Bank of India (SBI) and other stakeholders by Monday. According to the reconstruction scheme, SBI is expected to hold 49 per cent stake in the troubled bank.

RBI Governor Shaktikanta Das had also met SBI chief Rajnish Kumar on Friday to discuss the way to rescue the bank.

Also read: Rs 50,000 cap on Yes Bank withdrawals to go 'much much much' before Apr 3: SBI chairman

The apex bank has put moratorium on the troubled Yes Bank till April 3. However, Rajnish kumar said to BusinessToday.In that the restrictions will be lifted "much, much, much" before the deadline. He also said that Yes Bank will continue as a separate board-run entity and will not be merged with SBI. "It is a strategic investment decision by State Bank of India where as per the draft scheme which has been circulated and put in public domain by Reserve Bank of India the boundaries for this investment have been set. What it does say is that State Bank of India will invest minimum 26% that will be locked in for 3 years," said Kumar.

He had also said that many investors have reached out to SBI and that they have reached out to a lot of investors. "Many investors have reached out to us and we have reached out to many investors. We will have clarity within next 24 hours and will be able to give all those names and outline to RBI," said Rajnish Kumar.

Also read: 'Was in talks with RBI, Finance Ministry to takeover Yes Bank': Rana Kapoor

Also read: Depositors' money safe, Yes Bank in talks with investors: RBI

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