Govt nod for SBI-led group to take over Yes Bank?

The government has given a go-ahead to State Bank of India and other financial institutions to take over capital-starved Yes Bank, and an announcement is likely to be made soon, highly places sources said on Thursday. 

The board of SBI, the country's largest lender, is meeting in Mumbai on Thursday, but it could not be immediately ascertained whether the takeover of Yes Bank is on the agenda. 

Yes Bank, which is grappling with bad loans, is looking to raise fresh capital but the plans are facing uncertainties. 

It has also delayed the announcement of 2019 December quarter results due to the ongoing crisis. 

The bank's capital buffers have come down due to non-performing assets. 

The sources said the government has cleared a plan for an SBI-led consortium to acquire a controlling stake in the bank. 

In a clarification to stock exchanges on reports that the government is said to have approved SBI's plan to buy a stake in Yes Bank, the State-owned lender said it would disclose developments, if any, as per Sebi regulations. 

"... we will abide by the timelines under Regulation 30 of Sebi (LODR) Regulations 2015 in disclosing the developments, if any in the matter to stock exchanges," it added. 

Yes Bank said it would like to clarify that as on date, the bank has not received any such communication from RBI or any other government or regulatory authorities or from the SBI. 

"... we are unaware of any such decision. Therefore, we are not in a position to comment on such news item," Yes Bank said in a filing to the stock exchanges. 

The bourses had sought a clarification on the reports. 

Further, Yes Bank said in the usual and ordinary course of business it continues to explore various means of raising capital/ funds through issuance of securities to diverse set of investors to meet its business or regulatory requirements. 

The bank also said that it would keep stock exchanges updated on disclosures required to be made under Sebi regulations. 

Yes Bank has been passing through a tumultuous period ever since the Reserve Bank, in August 2018, asked the then chief executive Rana Kapoor to leave by January 31, 2019, amid concerns on governance and loan practices. 

Under his successor Ravneet Gill, the lender has disclosed large under-reported stressed assets. 

The bank reported its maiden loss in the March 2019 quarter. 

Yes Bank had initially planned to raise capital of over USD 2 billion in the current fiscal. Later, its board rejected a USD 1.2 billion investment in the bank by Canadian investor SPGP Group/ Erwin Singh Braich. 

Mumbai-headquartered Yes Bank was incorporated in 2004. The bank's asset size stood at Rs 3,71,160 crore at the end of June 2019. 

Promoters of Yes Bank -- Madhu Kapur, Yes Capital (India) Pvt Ltd and Mags Finvest -- hold 8.33 per cent stake in the crisis-ridden bank, as per data available on the stock exchanges. 

The bank's co-founder Rana Kapoor has sold his entire stake in the bank. 

Besides, foreign portfolio investors hold 15.17 per cent stake, State-owned LIC has 8.06 per cent, and mutual funds own 5.09 per cent. 

Shares of Yes Bank jumped nearly 26 per cent to Rs 36.85 apiece in late afternoon trade on the BSE.