SBI and LIC may extend helping hand to save the YES Bank that is sinking with bad loans. According to sources, the plan is to acquire 49 per cent stake in YES Bank through preferential shares at Rs 2 per share for a total consideration of Rs 490 crore.
SEBI may also give SBI an exemption from making an open offer, a report by Economic Times said. Earlier in the day, the government approved the SBI and other government-backed financial institutions to take over cash-starved Yes Bank. The private lender, which is grappling with bad loans, is looking to raise fresh capital but the plans are facing uncertainties.
The SBI stock jumped 1.05 per cent following reports that the government has given the go-ahead to the lender and other financial institutions to take over capital-starved Yes Bank.
The promoters of Yes Bank — Madhu Kapur, Yes Capital (India) Pvt Ltd and Mags Finvest — hold 8.33 per cent stake in it, according to the data on the stock exchanges. The bank’s co-founder Rana Kapoor has already sold his entire stake in the bank. The foreign portfolio investors hold 15.17 per cent stake, state-owned LIC has 8.06 per cent, and mutual funds own 5.09 per cent.