In a regulatory filing, SBI said, “Pursuant to the intimation given by yes Bank Ltd. to the stock exchanges on 07th July’ 2020 on the issue of raising capital, the Executive committee of central board (ECCB) of State Bank of India at its meeting held today on July 8, 2020 has accorded approval for a maximum investment of upto Rs 1,760 crore in the Follow-on Public Offering (FPO) of Yes Bank Ltd.”
Earlier under the reconstruction plan of Yes Bank by the regulator, State Bank of India had approved an investment ofRs 7,250 crore Yes Bank.
On March 5, 2020, the Reserve Bank of India had imposed moratorium on Yes Bank and took control over the debt-burdened private lender as it failed to meet the regulatory requirement of capital adequacy norms.
SBI along with other private lenders had invested in Yes Bank to keep it afloat. In the FPO, Yes Bank looks at raising Rs 10,000 crore.
