SBI-led consortium to buy controlling stake in Yes Bank, announcement likely soon: Sources
An announcement is expected soon, they added.
Yes Bank, which is grappling with bad loans, is looking to raise fresh capital but the plans are facing uncertainties.
It has also delayed announcement of 2019 December 2019 quarter results due to the ongoing crisis.
The bank's capital buffers have come down due to non-performing assets.
The sources said the government has cleared a plan for a SBI-led consortium to acquire a controlling stake in the bank.
In a clarification to stock exchanges on reports that the government is said to have approved SBI's plan to buy stake in Yes Bank, the state-owned lender said it would disclose developments, if any, as per Sebi regulations.
"... we will abide by the timelines under Regulation 30 of Sebi (LODR) Regulations 2015 in disclosing the developments, if any in the matter to stock exchanges," it added.
Yes Bank has been passing through a tumultuous period ever since the Reserve Bank, in August 2018, asked the then chief executive Rana Kapoor to leave by January 31, 2019, amid concerns on governance and loan practices.
Under his successor Ravneet Gill, the lender has disclosed large under-reported stressed assets.
The bank reported its maiden loss in the March 2019 quarter.
Yes Bank had initially planned to raise capital of over USD 2 billion in the current fiscal. Later, its board rejected a USD 1.2 billion investment in the bank by Canadian investor SPGP Group/ Erwin Singh Braich.
Mumbai-headquartered Yes Bank was incorporated in 2004. The bank's asset size stood at Rs 3,71,160 crore at the end of June 2019.
Promoters of Yes Bank -- Madhu Kapur, Yes Capital (India) Pvt Ltd and Mags Finvest -- hold 8.33 per cent stake in the crisis-ridden bank, as per data available on the stock exchanges.
The bank's co-founder Rana Kapoor has sold his entire stake in the bank.
Besides, foreign portfolio investors hold 15.17 per cent stake, state-owned LIC has 8.06 per cent, and mutual funds own 5.09 per cent.
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
- K'taka Assembly passes supplementary budget of Rs 10,265 crore
- Sports NFT platforms have racked up nearly $1 billion in funding this week alone, despite market slump
- COVID-19 virus likely to get weaker and become a common cold, says Oxford-AstraZeneca vax creator
- Best teether for growing baby in India
- TiE Delhi-NCR kickstarts the 10th Edition of India Internet Day themed Digital India: Escape Velocity