Investments In Yes Bank Aimed At Maintaining Financial Stability In System, Not RoI: SBI

Money & Banking

PTI Mumbai | Updated on March 16, 2020 Published on March 16, 2020

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.

 

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.

Published on March 16, 2020

RECENT NEWS

Military Community Shows Financial Resilience, Growing Savings By 19% And Cutting Credit Card Balances By 23% Over Last Five Years, New USAA Bank Data Shows

USAA’s Military Financial Wellbeing Index highlights the impact of pandemic-era trends and inflation on service member... Read more

USAA Announces Scholarship For Military Spouses With Valero Alamo Bowl

San Antonio-area military spouses qualify to apply for a $7,500 scholarship. Read more

USAA Ranked #1 In Customer Satisfaction And Most Trusted On 2024 J.D. Power Individual Annuity Study

Nov 01 2024 SAN ANTONIO – USAA, a leading provider of insurance, banking, and retirement... Read more

USAA Calls For National Moment Of Veteran Connection On Veterans Day

On Nov. 11, “Connect with a Veteran” calls for all Americans to “Go Beyond Thanks” to show appreciation for thei... Read more

Two Way Street: New Survey From USAA Shows Driving Apps Help Connect Parents And Young Drivers On Importance Of Safe Driving, Leading To Safer Roads

Data Reveals 87% of App-Using Parents Feel Their Child’s Driving Improved, Citing Increased Awareness and Feedback Read more

USAA Named UTSA Athletics Official Military Appreciation Partner

Exciting new initiatives planned as part of partnership Read more