Investments in Yes Bank aimed at maintaining financial stability in system, not RoI: SBI chief

SBI has invested ₹6,050 crore in crisis-ridden Yes Bank

Customers of Yes Bank queue up to withdraw money from their accounts at an Automated Teller Machine (ATM) kiosk in Mumbai on March 5, 2020. - India's central bank on March 5 appointed an administrator for one of the country's top lenders and limited withdrawals amid a "serious deterioration" in its financial position, in the latest bad debt issue to hit India's banking sector. Yes Bank, India's fourth-largest private sector bank, has been struggling with bad loans and the move came amid reports that the country's largest lender State Bank of India and other financial institutions were poised to bail it out. (Photo by Indranil MUKHERJEE / AFP)

State Bank of India Chairman Rajnish Kumar on Monday said investments by banks in crippled Yes Bank are being made to maintain financial stability in the system, and not guided by the principle of return on investment (RoI).

“The decision of the State Bank of India (SBI) and all other banks coming together, it is not guided by the return on capital principles or investments. It is all guided by providing stability to the financial system,” Kumar told reporters at the listing ceremony of SBI Cards and Payment Services in Mumbai.

The scrip made a weak debut at bourses, plunging nearly 13%, against its issue price of ₹755.

SBI has invested ₹6,050 crore in crisis-ridden Yes Bank.

ICICI Bank, Housing Development Finance Corp Ltd , Axis Bank, Kotak Mahindra Bank, Bandhan Bank, Federal Bank and IDFC First have also joined the SBI-led consortium and invested in Yes Bank .

• HDFC will invest ₹1,000 crore through a purchase of 100 crore shares
• Axis Bank will invest ₹600 crore by buying 60 crore shares
• Kotak Mahindra Bank ₹500 crore through 50 crore shares.
• Bandhan Bank will invest another ₹300 crore through the purchase of 30 crore shares
• IDFC First and Federal Bank have invested ₹250 crore and ₹350 crore, respectively