SBI Press Conference On Yes Bank:  Believe SBI’s Contribution Won’t Exceed Rs 10,000 Crore, Says Rajnish Kumar 
Rajnish Kumar, chairman of the State Bank of India (SBI), listens during an interview in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

SBI Press Conference On Yes Bank: Believe SBI’s Contribution Won’t Exceed Rs 10,000 Crore, Says Rajnish Kumar 

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Watch | Rajnish Kumar On SBI's Role In Yes Bank Rescue

Key Highlights From The Press Conference

On RBI Action

  • Won't comment on writing down of Yes Bank's AT1 bonds
  • Prima facie it seems that the value of Yes bank is set at Rs 2,550 crore. Which is why the RBI has chosen to keep the premium at Rs 8
  • Will be going to RBI on Monday with our comments

Merger With Yes Bank Ruled Out

  • We have been approached by some potential investors
  • Will have to see how investors value Yes Bank
  • I had said that there is no question of merger of Yes Bank with SBI and I stand by it
  • There is no question of any conflict of interest

SBI’s Contribution, And Impact On Finances

  • SBI's capital ratios will not be impacted by this investment
  • Will not need to raise any further capital from the market. Will not require to raise capital from government either
  • Don't believe that our contribution toward Yes Bank will exceed Rs 10,000 crore.
I wish there were not many times where SBI had to step in as a troubleshooter.
Rajnish Kumar, Chairman, SBI

Yes Bank's New MD Cannot Be From SBI: Rajnish Kumar

We have the right to appoint two nominee directors and suggest names for Managing Director and Chief Executive Officer’s role. That will be done. 
Rajnish Kumar, Chairman, SBI

Fate Of Yes Bank's Employees

  • Yes Bank's employees have been given protection under the reconstruction scheme
  • It is necessary that their morale is kept high

Believe SBI's Contribution Won't Exceed Rs 10,000 Crore: Rajnish Kumar

Don’t believe that our contribution toward Yes Bank will exceed Rs 10,000 crore. 
Rajnish Kumar, Chairman, SBI

Separate Individuals From The Institution, Rajnish Kumar On Rana Kapoor

“Yes Bank is an entity and Rana Kapoor is an individual. If the individual has done something wrong, they will face the consequences. The institution doesn’t have to suffer for that.” 

Will Have To See How Investors Value Yes Bank: Rajnish Kumar

  • Investment decisions are by choice. No compulsions
  • Our board mandate is that we must maintain 0.5 percent above regulatory minimum capital adequacy. We will continue to do that
  • Have to give assurance to potential investors and depositors. That's why we are stepping in
  • There is a certain process which has to be followed when a bank is being reconstructed. It had to be done
  • There were not many options before RBI and government, which is why, they had to go with this proposal.
I wish there were not many times where SBI had to step in as a troubleshooter.
Rajnish Kumar, Chairman, SBI
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