The country’s largest lender, State Bank of India (SBI), has got board approval to invest a maximum of Rs 1,760 in private lender YES Bank’s follow-on public offer (FPO). SBI already holds 48.21 per cent in the private lender after it invested more than Rs 6,000 crore to rescue it.
YES Bank got its board’s approval to raise Rs 15,000 crore via FPO to shore up its capital base. As of March quarter, the private lender had a CET-1 ratio of 6.3 per cent and Tier-1 ratio of 6.5 per cent, both of which are below the regulatory requirement.
In March this year, after the Reserve Bank of India dismissed the erstwhile board and management of the bank, a clutch of private sector banks and SBI, along with mortgage lender HDFC, rescued the bank by pumping in Rs 10,000 crore.