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Yes Bank crisis: SBI to hold a press conference at 10.15 am
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Yes Bank crisis: SBI to hold a press conference at 10.15 am

Read Time:2 Minute, 37 Second

Shares of Yes Bank plunged on Friday as panicky depositors rushed to withdraw funds a day after the Reserve Bank of India (RBI) imposed a 30-day moratorium on the capital-starved Yes Bank.

The bank regulator has capped withdrawals at Rs 50,000 per account and superseded the board of the private sector lender with immediate effect. A political war of words ensued as Yes Bank crisis intensified. The RBI has invited suggestions from members of the public, including the banks’ shareholders, depositors, and creditors on the draft scheme for the reconstruction of the Yes Bank.

As the State Bank of India (SBI) Chairman met the finance minister earlier in the day, it was decided that the SBI will pick up 49 percent stake in the Yes Bank under a government-approved bailout plan. The SBI will hold a press conference at 10.15 am on Saturday even as the bank expressed willingness to invest in the crisis-ridden Yes Bank. Follow Indiatoday.in for LIVE updates on the Yes Bank crisis.

Draft reconstruction scheme for crisis-hit Yes Bank

State Bank of India (SBI) will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan, with Finance Minister Nirmala Sitharaman assuring that depositors’ money is safe.

A day after imposing moratorium on Yes Bank and restricting withdrawals, the RBI on Friday evening issued a draft reconstruction scheme for the private sector lender and said SBI has “expressed its willingness” to make an investment.

Earlier in the day, SBI Chairman Rajnish Kumar met the finance minister. A former SBI CFO has already been appointed administrator of the Yes Bank, whose board has been superseded.

“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,” as per the RBI proposal.

SBI has already obtained an ‘in-principle’ approval of the board to explore investment opportunities in the Yes Bank. (-PTI)

RECAP | Yes Bank resolution to be done very swiftly says RBI governor


Defending the timing of Yes Bank’s moratorium, Reserve Bank of India Governor Shaktikanta Das on Friday assured swift resolution to the issues concerning the beleaguered lender.

“The resolution (to Yes Bank) will be done very swiftly, it will be done very fast. 30 days which we have given is the outer limit. You will see very swift action from RBI,” Das told reporters.

“The decision on Yes Bank was taken at a larger level, not only to deal with the problem in an individual entity but also to maintain stability and resilience of the Indian financial and banking sector,” he said.

On Thursday, Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board. The bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

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Rajveer Sekhawat

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