12,123.1516.25
Stock Analysis, IPO, Mutual Funds, Bonds & More

SBI coming to the aid of YES Bank? No way, says CFO Kumar

YES Bank is seeking to raise $2 bn by issuing fresh equity and weighing a number of offers.

ETMarkets.com|
Updated: Dec 11, 2019, 03.30 PM IST
0Comments
BCCL
Prashant-Kumar
State Bank of India (SBI), India’s largest bank by asset, has categorically denied it would do anything to help YES Bank come out of the mess it is currently in.
State Bank of India (SBI), India’s largest bank by asset, has categorically denied it would do anything to help YES Bank come out of the mess it is currently in.

SBI Chief Financial Officer Prashant Kumar told ETNow said there was no truth in market speculation regarding this and it was “out of the question that SBI will do anything for YES Bank.”

YES Bank, which has been reeling under liquidity issues after piling up loads of toxic assets, is seeking to raise $2 billion by issuing fresh equity and weighing a number of offers.

In a board meeting on Tuesday, the bank said it was willing to favourably consider the offer of $500 million investment by Citax Holdings and Citax Investment Group. A $1.2 billion binding offer from Erwin Singh Braich/SPGP Holdings is also under the board's consideration, it said.

Asked about SBI’s own undisclosed bad loans of Rs 12,000 crore, the SBI CFO said it would address DHFL-related recognition issues in Q3 earnings.

What awaits cash-starved YES Bank?

of 5
Next
Prev
Play Slideshow

​An endless hunt for investors

11 Dec, 2019
YES Bank’s board meeting was inconclusive on Tuesday as the firm still hasn’t firmed up on who could be the potential investors. It has been close to nine months since the new CEO Ravneet Gill took over and the firm is yet to raise money. A roadshow was done in Hong Kong and Singapore in September this year, that none of the 40 investors contacted wanted to give YES Bank capital. The struggle to raise money from quality investors shows us that investor interest in the stock continues to be very low.Source: Macquarie
Next

As per an assessment done by RBI, SBI’s gross NPAs was Rs 11,932 crore more at Rs 1,84,682 against Rs 1,72,750 reported for 2018-19, the bank said in a regulatory filing.

Similarly, net NPA was Rs 77,827 crore against the disclosed figure of Rs 65,895 crore, reflecting a divergence of Rs 11,932 crore, it said.

Kumar said the recognition norms vary and this is an intricate process, but assured that the bank would align with the regulatory norms.

Also Read

Challa Sreenivasulu Setty appointed MD of SBI

Economic slowdown hits jobs sector: SBI report

Sunteck Realty jumps 6% on tie-up with SBI

Complete Alok Industries takeover: SBI to RIL

SBI Mutual Fund IPO to come before general insurance: Rajnish Kumar, SBI

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service