Yes Bank – The Full Story Uncovered

For now, SBI (State Bank of India) is likely to invest Rs 7,250 crore in Yes Bank and purchase 49% of its stock of which it will have to maintain a minimum of 26% stock for a minimum of 3 years. After SBI buys the share in Yes Bank, it will help to regain the confidence of depositors in the bank as SBI is a very trusted name in banking. And, the Yes bank will get away from a big amount of liability it currently has because of the bad loans.

Whatever measures are being taken involves spending Taxpayers money, so it’s actually the public whose money will be used to keep the bank floating if not reaching the shore and not sinking in the nasty pool of mud. It is though important for the government to intervene and rescue the bank.