Yes Bank: SBI Set To Submit Its Rescue Plan This Week, To Infuse Rs 6000 cr, To Tap Global Investors For Rs 5000 cr

State Bank of India is set to submit its rescue plan for crisis-hit Yes Bank to the Reserve Bank of India (RBI) within a week, The Economic Times reported.

Under the proposed plan, SBI plans to infuse an investment of Rs 6,000 crore for a 26% stake while a similar amount to be tune of Rs 5,000 crore will be invested by a group of marqueE global investors.

SBI is said to be in negotiation with more than half-a-dozen investors, including Blackstone, Brookfield, Carlyle, TPG, KKR, JC Flowers and Goldman Sachs, for picking up stake in Yes Bank.

Under the rescue plan,fresh equity will be infused into the bank by SBI along three-four marquee investors along with SBI and a few domestic institutions and individuals.

SBI is said to be persuading external investors infuse as Rs 15,500 crore but the timeline of one week is believed to be posing a challenge.

The RBI is alsosaid to be finalising a plans to provide liquidity support of at least Rs 8,000-10,000 crore to stem any flight of deposits once the moratorium on Yes Bank is lifted.

The draft reconstruction plan unveiled by RBI entails an equity investment of up to 49% by SBI and the state-owned lender is required to hold a minimum 26% in Yes Bank for at least three years

Analysts estimate that YES Bank may need to provide for an additional provisioning of ₹18,000-20,000 crore in the near term for its troubled balanced sheet. The bank’s total Tier-I capital stood at ₹36,086 crore as of September 2019.