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SBI to buy stake in YES Bank? It's govt order, claims report

SBI has been asked to select other members of the consortium. An announcement related to the formation of consortium is likely to be made soon

twitter-logo BusinessToday.In        Last Updated: March 6, 2020  | 07:52 IST
SBI to buy stake in YES Bank? It's govt order, claims report
SBI-led consortium may buy 10% stake in the private lender

The government has reportedly asked State Bank of India (SBI) to form a consortium and buy stake in private sector lender YES Bank. SBI-led consortium may buy 10% stake in the private lender, according to Bloomberg. SBI has been asked to select other members of the consortium. An announcement related to the formation of consortium is likely to be made soon.

Meanwhile, BSE has sought clarification from YES Bank in reference to the news report.

YES Bank share price rises 27% as SBI asked to form consortium to buy stake in private lender

"The Exchange has sought clarification from Yes Bank Ltd on March 05, 2020, with reference to news flashed on Bloomberg dated March 05, 2020 quoting "Govt is said to have approved @TheOfficialSBI's plan to buy stake in @YESBANK, said to ask SBI to form consortium for Yes Bank stake," a notification by YES Bank said.

Meanwhile, YES Bank stock price rose 27.3% to Rs 37.3 compared to the previous close of Rs 29.30 on BSE. It had earlier hit a fresh 52-week low of Rs 28.05 on BSE today.

YES Bank has been looking to raise up to $2 billion to shore up its capital base. In February this year, the bank said it received expressions of interest (EoIs) from foreign investors such as JC Flowers and Tilden Park Capital Management.

The private lender has also said it'll release the December quarter financial results by March 14, 2020.  According to reports, the lender wants to raise adequate capital ahead of its Q3 earnings.  

In December last year, YES Bank disclosed that its board was willing to favourably consider London-based Citax Holdings' $500 million offer, adding that it would continue to evaluate other potential investors to raise capital up to $2 billion.

YES Bank has rejected $1.2 billion investment offer made by Canadian industrialist Erwin Singh Braich/SPGP Holdings.

YES Bank slips 6.5% amid likely regulatory hurdle over 'foreign ownership'

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