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.
The scheme, Second Innings Tap VRS-2020, is aimed at optimising human resources and costs of the bank
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Under the collaboration, payments of up to Rs 2,000 can be made without entering a PIN.