Trade Nivesh The government has approved the State Bank of India's (SBI) plan to lead a consortium and purchase stake in Yes Bank, Bloomberg reported.
https://in.tradingview.com/u/TradeNivesh/
SBI has also been given the green signal to choose members of the consortium, sources told the news agency.
The announcement is expected soon, the report added.
Moneycontrol could not independently verify the report.
Representatives for Yes Bank and SBI have not yet responded to BloombergQuint's requests for a comment.
Yes Bank had in September 2019 announced a $2 billion capital raising plan.
Shares of Yes Bank jumped 17 percent following the report, while SBI's shares fell 5 percent.
Commenting on the development, former Indian Banks' Association (IBA) chief executive VG Kannan told CNBC-TV18 that the stake purchase by SBI should not be seen as an acquisition but rather an investment. Banking regulators won't allow substantial stake acquisition in another bank, he added.
https://in.tradingview.com/u/TradeNivesh/
SBI has also been given the green signal to choose members of the consortium, sources told the news agency.
The announcement is expected soon, the report added.
Moneycontrol could not independently verify the report.
Representatives for Yes Bank and SBI have not yet responded to BloombergQuint's requests for a comment.
Yes Bank had in September 2019 announced a $2 billion capital raising plan.
Shares of Yes Bank jumped 17 percent following the report, while SBI's shares fell 5 percent.
Commenting on the development, former Indian Banks' Association (IBA) chief executive VG Kannan told CNBC-TV18 that the stake purchase by SBI should not be seen as an acquisition but rather an investment. Banking regulators won't allow substantial stake acquisition in another bank, he added.
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