Depositors’ money not at risk, reconstruction draft bill being studied: SBI Chairman on Yes Bank

New Delhi: A day after the State Bank of India expressed its willingness to invest in debt-ridden Yes Bank, the SBI chairman Rajnish Kumar on Saturday (March 7, 2020) said that the draft scheme is already in public domain and SBI’s investment and legal team is working on preparing the report which is to be submitted to RBI on Monday (March 9, 2020). 

While addressing a press conference, Rajnish Kumar informed that SBI will invest Rs 2450 crore in Yes Bank and own 49 per cent of the restructured bank. “SBI board has given in-principle approval of exploring the possibility of picking up a stake of up to 49% in Yes Bank,” he said.

Talking about the draft plan, Rajnish Kumar said that there are many potential investors and only after seeing the scheme RBI has approached us. He added, any investor wanting to invest above 5 per cent, will have to go through all regulatory norms of RBI.

Keeping the Yes Bank customers in concern, Kumar said that the depositors will face inconvenience but they need not worry about the money as it is in safe hands.

Talking about SBI’s step to help in rebuilding Yes Bank’s condition in the market, Kumar said that SBI is a national institution and will help in nation-building. He added that Yes bank once run out of administration will take an investment call as an investor will tell about our expectations and will not be involved in the day to day activities. 

Giving more information on the matter, Kumar said that forensic audit will be decided by the RBI and the government. 

Speaking on Enforcement Directorate’s raid at Yes Bank founder Rana Kapoor’s residence over money laundering case, Kumar said that the raid will have no impact on Yes Bank’s image. 

Earlier, on Friday a case has been registered against Rana Kapoor under the Prevention of Money Laundering Act (PMLA) and a lookout notice has been issued against him to prevent him from leaving the country.

SBI, as well as the general public, now has time until Monday to comment or make suggestions on the RBI’s draft plan.

After the Yes Bank matter came to light, Finance Minister Nirmala Sitharaman said that the RBI has been asked to assess the causes of problems and identify the role played by individuals. The Finance Minister also said that employment and salary of Yes Bank employees have been assured for one year.