Evaluating draft reconstruction scheme for Yes Bank: SBI chief

The GDP in the April-June quarter of the current financial year — the three months worst hit by the coronavirus — is likely to fall by 16.5 per cent against the earlier estimate of over 20 per cent, although a lot of uncertainties still persist, SBI’s Ecowrap said. Photo: PTI

SBI Chairman Rajnish Kumar on Saturday (March 7) said the bank has received the draft scheme of reconstruction for crisis-hit Yes Bank.

Bank officials are doing due diligence of the draft scheme, he added. “We have received draft scheme of reconstruction for Yes Bank. Our investment and legal team is doing due diligence,” Kumar told reporters here.

He also said many potential investors have approached SBI after seeing the draft scheme. Kumar further said the interest of shareholders will not be compromised.

On Friday, the RBI announced a draft scheme of reconstruction for cash-starved Yes Bank.

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In its draft “Yes Bank Ltd. Reconstruction Scheme, 2020,” RBI said the strategic investor bank will have to pick up 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion.

The draft came a day after the RBI imposed a moratorium on Yes Bank, restricting withdrawals to ₹50,000 per depositor till April 3. The RBI also superseded the board of the private sector lender, which is now being headed by former deputy managing director and CFO of SBI Prashant Kumar.

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