State Bank of India, the nation’s biggest lender is reportedly allowed by the Finance Ministry to proceed with its plans to head a consortium, formed to buy stakes of sinking Yes bank Ltd.
Both SBI and Yes bank spokesmen are restraining to comment on the subject. Yes Bank’s shares jumped 12.8% in Mumbai on Thursday, while State Bank of India dropped 5% on the news. Authorities won’t allow any major bank to fail, central bank Governor Shaktikanta Das told Bloomberg News in an interview this week.
Yes Bank had earlier claimed that it had received non-binding offers from big foreign investors, none of which were realized as the investors denied the offer later.