INSUBCONTINENT EXCLUSIVE:
MUMBAI: State Bank of India (SBI) will submit its rescue plan for Yes Bank within a week to the Reserve Bank of India (RBI) that will likely
entail a maximum investment of Rs 6,000 crore for a 26% stake
The plan may involve a similar amount to be invested by a group of global investors, said people aware of the matter
The RBI is also firming up plans to provide liquidity support of at least Rs 8,000-10,000 crore to stem any flight of deposits once the
Blackstone, Brookfield, Carlyle, TPG, KKR, JC Flowers and Goldman Sachs, for a potential investment in Yes Bank
The plan is to infuse fresh equity into the bank and have three-four marquee investors along with SBI and a few domestic institutions and
SBI is keen to have external investors put in as much as Rs 15,500 crore but the timeline of one week is believed to have deterred some.
The
SBI chairman had said Saturday that there was interest from several investors and, at a base price of Rs 2,450 crore, an investment in the
22,000 croreThe RBI, which superseded the Yes Bank board and imposed a 30-day moratorium on Thursday, announced a draft reconstruction plan
in Yes Bank for at least three years
Analysts estimate that the maximum of Rs 10,000 crore that SBI plans to invest in Yes Bank is less than half of what it needs to stay afloat
The beleaguered bank will need at least Rs 22,000 crore, half of which will have to come from non-SBI investors
The magnitude of the provisions required by the bank has prevented investors from infusing funds in the past.
