The country’s largest lender State Bank of India (SBI) on Thursday said that its board had approved a plan to purchase 725 crore Yes Bank shares at a price of Rs 10 apiece. The announcement comes days after the Reserve Bank of India (RBI) suspended the troubled private sector lender’s board and restricted withdrawals from its accounts till April 3. Struggling under a growing pile of bad debt, Yes Bank had been trying to raise the capital it needed to stay above regulatory requirements.
In a regulatory filing to BSE after market hours on Thursday, SBI said the decision was approved by its Executive Committee of Central Board (ECCB) in a meeting held on March 11.
SBI also said its shareholding in Yes Bank will remain within 49 per cent of its paid-up capital.
Last week, the Reserve Bank of India (RBI) brought out a draft restructuring plan for Yes Bank.