Bloomberg report said the government has asked the country’s largest lender State Bank of India (SBI) to bail out the private lender by forming a consortium of banks and picking up stake. However, YES Bank has denied any such move and said it has not received any such communication from the Reserve Bank of India or any other regulatory authority.SBI and LIC are set to pick up 49 per cent stake in YES Bank by acquiring preferential shares in the private lender at Rs 2 per share, sources told ET NOW. SBI will likely be given exemption from open offer. It should be noted that a similar exemption was given to the lender in case of Union Bank of India in November 2019.In case of SBI, JP Morgan believes implications for biggest lender being called for national service are incrementally negative for its valuations as it sets a precedent for nationalisation of any future private losses. |