SBI says YES Bank survival crucial, can invest up to Rs 10,000 cr in it

SBI chief asserts private lender's failure could have huge implications for economy, says many co-investors have evinced interest afte reading RBI draft

State Bank of India (SBI) is ready to invest up to Rs 10,000 crore for a 49 per cent stake in YES Bank as part of a bailout and revival plan. The bank would initially invest Rs 2,450 crore, but was ready to invest the additional amount if required, SBI Chairman Rajnish Kumar told reporters here on Saturday.

“I have already set the (investment) boundary of Rs 10,000 crore,” Kumar said, adding this was based on the assumption of higher capital requirement by the bank. Assuming the private lender issues 20 billion shares at Rs 10 apiece (with face value