State Bank of India Chairman Rajnish Kumar on Monday said investments by banks in crippled Yes Bank are being made to maintain financial stability in the system, and not guided by the principle of return on investment (RoI).
“The decision of the State Bank of India (SBI) and all other banks coming together, it is not guided by the return on capital principles or investments. It is all guided by providing stability to the financial system,” Kumar told reporters at the listing ceremony of SBI Cards and Payment Services here.
The scrip made a weak debut at bourses, plunging nearly 13 per cent, against its issue price of ₹755.
SBI has invested ₹6,050 crore in crisis-ridden Yes Bank.
Related Stories
YES Bank continues to breach RBI’s critical liquidity and statutory requirements
ICICI Bank, Housing Development Finance Corp Ltd, Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First have also joined the SBI-led consortium and invested in Yes Bank.
HDFC will invest ₹1,000 crore in Yes Bank through a purchase of 100 crore shares. Axis Bank will invest ₹600 crore by buying 60 crore shares and Kotak Mahindra Bank ₹500 crore through 50 crore shares.
Bandhan Bank will invest another ₹300 crore through the purchase of 30 crore shares. IDFC First and Federal Bank have invested ₹250 crore and ₹350 crore, respectively, in the lender.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.