Yes Bank shares gain nearly 10% after SBI says it will infuse Rs 7,250 cr into crisis-hit private lender
Yes Bank has been struggling to raise capital amidst its dwindling financial health.
New Delhi: Shares of Yes Bank on Friday rose nearly 10 percent after State Bank of India (SBI) said it will infuse Rs 7,250 crore into the crippled private sector lender.
The scrip witnessed a sharp rise, spiking 9.98 per cent to Rs 27.55 on the BSE.
On the NSE, it jumped 10.57 per cent to Rs 27.70.
The largest lender SBI on Thursday announced a Rs 7,250-crore fund infusion into the crippled Yes Bank under which it will pick up to 49 per cent equity in the fourth largest private sector lender.
The SBI investment of Rs 7,250 crore is much higher than Rs 2,450 crore it had planned initially for 49 percent stake in the private sector lender that began operations in 2004.
Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise $2 billion initially during this fiscal, which was then pruned to $1.2 billion as it could not rope in any investor.
With moratorium being lifted from Wednesday, the crisis-hit Yes Bank might see a heavy withdrawal of deposits by customers, according to a report
Yes Bank reported on Saturday a staggering Rs 18,654-crore loss for the December quarter due to higher recognition of dud assets on the books, and an erosion of capital buffers to the brink
RBI warns Yes Bank of regulatory action for disclosure of nil divergence report; says Risk Assessment Report misrepresented
The RAR also identifies several other lapses and regulatory breaches in various areas of Yes Bank's functioning and the disclosure of just one part of the RAR is viewed by RBI as a deliberate attempt to mislead the public, the RBI said.