Legal team working on YES Bank's rescue, depositors' money safe: SBI Chief

State Bank of India chairman Rajnish Kumar on Saturday said that the bank had received the draft scheme for the reconstruction for crisis-hit Yes Bank and a legal team was doing its due diligence on it. He said the bank would go to the Reserve Bank of India by March 9.

Speaking at a press conference, Rajnish Kumar said that SBI had been approached by many investors, who saw an opportunity in YES Bank.

"Plan has been received by SBI and the legal team is working on the plan. We had informed through the stock exchange that SBI board has given in-principle approval of exploring possibility of picking up a stake of upto 49 per cent in YES Bank," Kumar added

He also assured YES Bank's depositors that their money is safe.

Kumar added that a new board of YES Bank would be constitued and it would have two nominies from the bank.

The Reserve Bank of India on Friday presented a reconstruction plan for the troubled private sector lender under which SBI will pick up a 49 per cent stake in YES Bank. The draft came a day after the RBI imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3

The draft scheme, mentioned SBI as the “investor bank” and said it would pay at least Rs 10 per share for buying equity in YES Bank. The RBI has invited comments on the draft scheme from members, depositors, or creditors of YES Bank Ltd and will accept them till March 9.

State Bank of India

Yes Bank