The State Bank of India (SBI) on Wednesday said that that it will further invest Rs 1,760 crore in the public offering of beleaguered private lender Yes Bank. The decision was approved by SBI’s executive committee, the country’s largest bank told the exchanges in a regulatory filing. In March this year, the SBI board had approved an investment of Rs 7,250 crore in Yes Bank. Earlier during the day, the Yes Bank board approved a plan to raise funds through a follow-on public offer. The Capital Raising Committee (CRC) of the board of directors, at its meeting held on July 7, approved fund raising through a follow-on public offer.
The details of the offer would be shared after completing formalities with the Registrar of Companies, the bank said in its release, adding that a meeting of the CRC will be held on or after July 10 to approve the price band and discount of the shares on offer.
Following the announcement regarding raising capital, Yes Bank shares witnessed an uptick. The bank’s shares closed at Rs 26.10 apiece, up 1.36 per cent. Meanwhile, SBI’s shares rose 1.80 per cent to close at Rs 191.95, at the end of day’s trading.
Earlier this year, the Reserve Bank of India (RBI) had taken control of Yes Bank, after the bad-debt laden lender had failed to raise the capital it needed to stay above mandated regulatory requirements. Since then SBI had stepped in to acquire a stake in the private lender and to keep it afloat.