On Monday, Yes Bank’s share advanced as much as 30 per cent that State Bank of India (SBI) need to come up with equity investment of over Rs 20,000 crore to save bank account from collapse, is in talks with more than half dozen potential investors. Blackstone, Brookfield, Carlyle, TPG, KKR and Goldman Sach is included. BSE Sensex benchmark was down over 3 per cent as coronavirus panicked investors assessed deteriorating financial markets. Also, the state-owned bank talks with Tilden Park, JC JC Flowers and Cerberus Capital, some of which the previous management had been negotiating with.
It could not be ascertained how much each investor is willing to chip in. Some state-owned institutions may also participate, media reported. Housing Development Finance Corp (HDFC) is also said to be interested in investing in the bank; the mortgage lender didn’t respond to queries.
Last year in August, its asset management arm bought YES bank shares at around Rs 83.55 apiece in a qualified institutional placement (QIP). Last week on Friday, RBI said that SBI has expressed to willing to invest in crisis-ridden Yes Bank. In the draft ‘YES Bank Ltd. Reconstruction Scheme, 2020’, the RBI also 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.
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