YES bank’s bailout plan is almost ready as several investors have given their proposal to RBI for putting money in it. Investors like SBI, ICICI, HDFC, Kotak Mahindra and people like Rakesh Jhunjhunwala and Radhakrishna Damani are interested in the YES BANK revival plan. All investors have sent a proposal to RBI. After investent, regular banking can start at Yes Bank very soon.
The Executive Committee of Central Board (ECCB) of State Bank of India (SBI) has approved the purchase of YES Bank shares worth Rs 725 crore. SBI will buy Yes Bank shares for Rs 10 per share. Accordingly, SBI will invest a total of Rs 7250 crore in Yes Bank. After this investment, SBI’s stake in Yes Bank will be 49%. SBI told the stock exchange that it would not increase its stake in Yes Bank by more than 49 per cent.
With the SBI, new investors will be available soon. Global Investors will now show interest in YES Bk. The quarterly results of YES BANK will be released on March 14. RBI on March 5 placed Yes Bank on the Mauritorium. Also, to withdraw money, a limit of 50 thousand rupees was imposed. In such a situation, to save this bank from sinking, RBI asked SBI to buy 49% shares.
For liability cleanups, global P/E players have set out essential conditions. JC Flowers, Cerberus Capital, Tiden Park Capital and Blackstone want SBI to fully write-down Yes Bank’s Tier II bonds. As per the scheme, investors in further Tier I (AT1) bonds have consented to write-off 80 per cent of their investment and switch 20 per cent to investment.
At the same time, further investments can take place. FIIs and PE funds can invest in 5000–7000 crores. An investment of Rs 700-1000 crore can come from ICICI. HDFC Group can invest in 700-1000 crores. At the same time, Rakesh Jhunjhunwala can invest Rs 350-500 crore and RK Damani Rs 350-500 crore in YES Bank.
