Published 11:53 IST, March 16th 2020
Yes Bank investment meant to ensure system's stability, not RoI: SBI chief's big admission
State Bank of India Chairman Rajnish Kumar on Monday said investments by banks in crippled Yes Bank are being made to maintain financial stability in the system
- Economy News
- 2 min read
State Bank of India Chairman Rajnish Kumar on Monday said investments by banks in crippled Yes Bank are being made to maintain financial stability in the system, and not guided by the principle of return on investment (RoI).
"The decision of the State Bank of India (SBI) and all other banks coming together, it is not guided by the return on capital principles or investments. It is all guided by providing stability to the financial system," Kumar told reporters at the listing ceremony of SBI Cards and Payment Services.
Investment details in Yes Bank
The scrip made a weak debut at bourses, plunging nearly 13 per cent, against its issue price of Rs 755. SBI has invested Rs 6,050 crore in crisis-ridden Yes Bank. ICICI Bank, Housing Development Finance Corp Ltd, Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank, and IDFC First have also joined the SBI-led consortium and invested in Yes Bank.
HDFC will invest Rs 1,000 crore in Yes Bank through a purchase of 100 crore shares. Axis Bank will invest Rs 600 crore by buying 60 crore shares and Kotak Mahindra Bank Rs 500 crore through 50 crore shares. Bandhan Bank will invest another Rs 300 crore through the purchase of 30 crore shares. IDFC First and Federal Bank have invested Rs 250 crore and Rs 350 crore, respectively, in the lender.
Updated 11:53 IST, March 16th 2020