RBI prepares intervention plan for Yes Bank if fund raising is delayed: Report

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The Reserve Bank of India (RBI) and the government are evaluating multiple options for Yes Bank, including an interim bailout, in case the lender's $2 billion capital raising plan is further delayed, Mint reported.

The rescue methods that are being weighed include a sale of pooled assets to state-run lenders or, as the last resort selling a small stake to a public sector bank (PSB), sources told the paper.

JC Flowers, Cerberus Capital Management and Hinduja Group are studying Yes Bank’s accounts for a potential investment, the report said.

Moneycontrol could not independently verify the story.

A Yes Bank spokesperson told Mint that rumours of a delay in capital raising and intervention from PSBs are 'speculative and factually incorrect'.

While Yes Bank is hopeful of arranging the funds by March 14, there is a likelihood that a PSB will have to provide some relief temporarily if the lender’s negotiations with investors continue, the report said.

“The deadline of March 14 seems overly optimistic at the moment even though the potential investors remain engaged," a source told the paper.

Any investment by a state-run lender will have be passed to RBI or the government for approval, the article quotes a banker at a PSB as saying.

“Public sector banks are in the midst of cleaning their own books and would like to stay away from such purchases," the banker added.

In February, Yes Bank said it has received non-binding expression of interest (EoIs) from JC Flowers & Co, Tilden Park Capital Management, OHA (UK) (part of Oak Hill Advisors) and Silver Point Capital.