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Infuse capital in YES Bank; acquiring it will be disaster: Analysts to SBI

Most analysts believe it is a positive step for the Indian financial sector as the the government has tried to avoid a repeat of IL&FS-like crisis

Compare it to any other public sector bank, SBI is the most suitable bank to take up YES Bank
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RaviKant Bhat, Banking Analyst at IndiaNivesh said the move is a positive development for YES Bank as there has been lot of speculation on how much capital it would manage to raise and its fate if not able to.

Swati VermaNikita Vashisht New Delhi
Shares of State Bank of India (SBI) witnessed a knee-jerk reaction and slipped over 5 per cent in the intra-day session on Thursday after media reports suggested the government may ask the bank to form a consortium and pick a stake in the beleaguered private lender, YES Bank. The stock, however, recovered later. YES Bank, on the other hand, zoomed over 29 per cent on the expectations that move will provide much-needed stability and capital to the bank.

Although the details of the development are yet to be out, Business Standard spoke to a few analysts to ascertain what this