SBI may invest up to Rs 1,760 crore in YES Bank’s FPO

Mumbai: Top lender State Bank of India (SBI) said on Wednesday it may invest up to Rs 1,760 crore in private lender YES Bank’s upcoming follow-on public offer (FPO).

In an exchange filing, SBI said its executive committee of central board (ECCB) of state has accorded approval for a maximum investment of up to Rs 1,760 crore in the YES Bank FPO.

Late on Tuesday, YES Bank said its capital raising committee (CRC) of the Board of Directors has approved raising funds by way of a FPO. The FPO may be launched later this month, a person aware of the matter told ETMarkets.com.

YES Bank said the meeting of its CRC is scheduled to be held on or after July 10 to consider and approve the price band and discount, if any.

On March 5, the Reserve Bank of India had superseded the board of YES Bank and put it under moratorium. This moratorium was lifted on March 18 and the central bank handed over the charge to a new set of board members. Prashant Kumar was appointed the new MD and CEO of the bank.

Investors led by SBI, including Housing Development Finance Corporation (HDFC), Axis Bank, ICICI Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First Bank invested Rs 10,000 crore in YES Bank.