New Delhi: Govt approves SBI’s plan to buy controlling stake in Yes Bank. Highly placed sources gave this information on Thursday.
Sources said that it is expected to be announced soon. Private sector Yes Bank is struggling with the problem of submerged debt. The bank wants to raise new capital, but its plan is facing problems. Due to the current crisis, the bank postponed the announcement of quarterly results for December 2019. The secured capital of the bank has come down due to non-performing assets (NPAs).
Sources said that the government has approved a plan to take a controlling stake in Yes Bank of a tie-up with SBI-led banks. In an explanation sent to the stock markets on these reports, SBI has said that it will disclose the developments in this regard under SEBI regulations.
“We will follow the deadline for disclosing any developments to the stock markets under Regulation 30 of SEBI (LODR) Regulations, 2015,” the bank said. Yes Bank is in crisis since August 2018. At that time, the Reserve Bank had asked the then head of the bank, Rana Kapoor, to step down by 31 January 2019 due to operational lapses and credit flaws. The bank, under his successor Ravneet Gill, has disclosed pressurized assets that were not disclosed. The bank had its first loss in the quarter of March 2019.
