The State Bank of India (SBI) will be the main investor in the bailout plan of Yes Bank. SBI is expected to invest around Rs 10,000 crore in the debt-lending private bank.
Chairman Rajnish Kumar on Monday said in an interview with NDTV that Yes Bank depositors need not worry about money once the SBI formally steps in and that the financial system is sound.
The capitalisation of Yes Bank would require an investment of Rs 20,000 crore to Rs 22,000 crore to meet regulatory capital ratio, he said. Regarding SBI’s investment, he said that State Bank of India, RBI and the government will collectively take a decision.
He said that survival of Yes Bank is crucial for the financial system and many co-investors are willing to join. The moratorium imposed can be lifted as early as one week, he added.