State Bank of India (SBI) Chairman Rajnish Kumar expressed certainty in “some solutions emerging” for troubled private-lender Yes Bank, Bloomberg reported.
Kumar further noted that, as a major player in the market, it would “not be good” for India’s economy if Yes Bank fails. “A bank that size, if it is allowed to fail, there’s a problem. I am sure that some solutions will emerge,” he stated.
Yes Bank is a significant player with $40 billion balance sheet, speaking to Bloomberg Television in Davos Kumar stated, “I have a feeling that it will not be allowed to fail.”
The private lender’s shares shed 80 percent over the past year as it faced uncertainty around asset quality and difficulty in raising capital. The bank is barely close to the Reserve Bank of India’s prescribed core equity capital ratio of 8 percent.
Following Kumar’s statement, Yes Bank was quoting at Rs 40.60, up by Rs 2.15, or 5.59 percent, at 12:54 pm.
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