State Bank of India , as per reliable sources, is exploring a wide range of rescue options for struggling Yes Bank including a complete buyout of its private-sector rival, two sources familiar with the matter said.
The sources, quoting private discussions, said other optionsbeing considered include getting a consortium together to pool funds to bailout the lender.
One of the sources, as quoted in a media report, who waspresent at SBI’s board meeting on Thursday, said one of the proposals includedthe state-run lender buying out the troubled lender and delisting it from thestock exchange.
Notably, in a regulatory filing after the meeting, SBI saidits board had given it an in-principle nod to explore an investment in YesBank, an about-turn for SBI.
Earlier in the day, the State Bank of India Chairman Rajnish Kumar said, “Will comeout with a restructuring plan for Yes Bank.” The SBI chairman Rajneesh Kumarhad come to Parliament for a meeting with finance minister Nirmala Sitharamanand he also assured that there was no need for stakeholders includingdepositors to panic.
RBI action on Yes Bank’s hits PhonePe’s operations
After Yes Bank was placed under moratorium, digital paymentswere impacted as PhonePe, which depends on the cash-strapped lender for itstransactions, could not operate.
It can be noted that the bank’s own net banking facilitieshave not been operational since last evening. Other fintech operators who relyon Yes Bank to settle their transactions are also down.
“We sincerely regret the long outage. Our partner bank(Yes Bank) was placed under moratorium by RBI. Entire team’s been working allnight to get services back up asap (as soon as possible)”, the app’s chiefexecutive Sameer Nigam tweeted early in the morning.