SBI sets Rs 10,000-cr cap for Yes Bank investment

State Bank of India, which can pick up 49 per cent stake in crisis-hit Yes Bank under the RBI's draft scheme of reconstruction, has set a maximum investment limit of Rs 10,000 crore for the lender, its Chairman Rajnish Kumar said.

Announcing a draft scheme of reconstruction for cash-starved Yes Bank on Friday, RBI said the strategic investor bank will have to acquire 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion.

SBI's board has already given 'in-principle' approval to explore investment opportunity in Yes Bank.

Rajnish said if SBI becomes the sole investor in the bank and picks up 49 per cent stake, then the immediate investment requirement would be Rs 2,450 crore.

"I have already set the (investment) boundary of Rs 10,000 crore," Rajnish told reporters.

The cap of Rs 10,000 crore is based on the assumption of higher capital requirement by the bank, he added.

Yes Bank has been struggling to raise capital. It sought to raise USD 2 billion initially, which was then pruned to USD 1.2 billion as it could not rope in any investor.

(with news agency inputs)