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HDFC, ICICI Bank to remain invested in YES Bank
July 04, 2022
“Today, among the large institutional investors, there are SBI, HDFC and ICICI Bank. Others have already sold some portion. These three will continue with us,” said Prashant Kumar, Managing Director and CEO, YES Bank.
As part of the reconstruction scheme, eight banks and financial institutions led by SBI had picked up stake in YES Bank in March 2020. As on March 31, 2022, SBI held 30 per cent stake, HDFC Ltd held 3.99 per cent stake and ICICI bank held 2.99 per cent equity shares in the lender. In an interaction with BusinessLine, Kumar noted that SBI is the most critical with 30 per cent equity.
“SBI has put money in this bank for the purpose of bailing out. Otherwise, theoretically, it does not make sense for a bank to remain invested in another bank to such a large extent,” he said. While it does not make sense for SBI to continue for a long time, a solution will have to be eventually arrived at where another investor may like to come in place of SBI. Kumar said.
In a recent interview with BusinessLine, SBI Chairman Dinesh Kumar Khara had said the bank has not taken any formal call on easing out as a shareholder of YES Bank as of now. “But yes, we will evaluate when we will be nearer to that time,” he had said.
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