The government has approved a plan to buy a controlling stake in Yes Bank, an alliance of banks led by the State Bank of India (SBI). With this, it is expected to be announced soon. For your information, let us tell you that most of the loans that YES Bank had distributed are drowned, the bank is struggling with this problem. At the same time, the bank wants to raise new capital, but it is facing difficulty in this work. For this reason, the bank has not announced the quarterly results of December 2019. The bank's secured capital has been reduced due to NPAs.
Along with this, in response to the news sent to the stock markets about the approval for stake acquisition, SBI has said that it will disclose it under SEBI regulations. The bank said, 'We will follow the deadline for disclosing any developments to the stock markets under Regulation 30 of SEBI (LODR) Regulations, 2015. It is known that Yes Bank is in crisis since August 2018. Also, at that time RBI had asked the then bank chief Rana Kapoor to step down by January 31, 2019 due to operations issues and loan-related irregularities. At the same time, under his successor Ravneet Gill, the bank has disclosed pressurized assets that were not disclosed.
With this, the bank incurred losses for the first time in the quarter of March, 2019. Yes Bank initially planned to raise two billion dollars of capital. The bank's board of directors later turned down a $ 1.2 billion investment proposal by Canadian investor SPGP Group-Irwin Singh Brych. Yes Bank is headquartered in Mumbai, it was founded in 2004. According to data available on the stock exchange, promoters of Yes Bank, YES Capital (India) Private Limited and Mags Finvest, have 8.33 per cent stake in the troubled bank.
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