SBI to invest up to Rs 1,760 cr in Yes Bank's FPO

Yes Bank said it has received approval from the Capital Raising Committee of the Board of Directors of the Bank for raising funds by a way of FPO.

State Bank of India on Wednesday said its executive committee of central board has given approval for a maximum investment of up to Rs 1,760 crore in further public offering (FPO) of Yes Bank.

The announcement came after Yes Bank on Tuesday said it has received approval from the Capital Raising Committee of the Board of Directors of the Bank (CRC) for raising funds by a way of FPO.

"Pursuant to the intimation given by Yes Bank to the stock exchanges on July 7, 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 up to Rs 1,760 crore in the Further Public Offering (FPO) of Yes Bank Ltd," SBI said in a filing to the exchanges.

On Tuesday, Yes Bank had informed the exchanges that post closure of the requisite formalities with the Registrar of Companies, Maharashtra, the details in respect of the offer will be disseminated in accordance with the provisions of the Securities and Exchange Board of India's regulations.

It further said a meeting of the CRC of the bank is scheduled to be held on or after July 10, 2020 to consider and approve, amongst other things, the price band and discount, if any.

On March 13, the government had approved a bailout plan for Yes Bank.

Under the plan, Yes Bank had received around Rs 10,000 crore from eight financial institutions, including Rs 6,050 crore from SBI.

Photograph: PTI Photo