RBI And Govt Has Plans For Yes Bank, Says Report

The Reserve Bank of India and the government are mulling over a plan for Yes Bank as the latter is not through with its fund raising plan as yet. And in it, they are considering an interim bail out for the private lender that has been struggling for quite a while despite its strong brand equity.

RBI And Govt Has Plans For Yes Bank, Says Report

Also, there are considered other proposals such as sale of pooled assets to state run banks or as a last measure sale some stake in the bank to PSU lenders.
Meanwhile as per the report, contenders including Hinduja Group, Cerberus Capital Management as well as JC Flowers are evaluating the bank's account for a likely stake in the bank.

While, the private lender is hoping of capital raising by March 14, for a temporary bail-out some PSB may have to intervene. Nonetheless, a spokesperson from the bank said that rumours around delay in capital raising as well as PSBs intervening is 'speculative and factually incorrect'.

So, PSBs at the current time when busy with cleaning their own balance sheet might stay away from such an interest at this point in time. Furthermore, stake purchase by PSB if under plan will need to be approved by the government or RBI.

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