Investments In Yes Bank Aimed At Maintaining Financial Stability In System, Not RoI: SBI

Money & Banking

PTI Mumbai | Updated on March 16, 2020 Published on March 16, 2020

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 here.

 

The scrip made a weak debut at bourses, plunging nearly 13 per cent, against its issue price of ₹755.

SBI has invested ₹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 ₹1,000 crore in Yes Bank through a purchase of 100 crore shares. Axis Bank will invest ₹600 crore by buying 60 crore shares and Kotak Mahindra Bank ₹500 crore through 50 crore shares.

Bandhan Bank will invest another ₹300 crore through the purchase of 30 crore shares. IDFC First and Federal Bank have invested ₹250 crore and ₹350 crore, respectively, in the lender.

Published on March 16, 2020

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