Mumbai / New Delhi, Mar 16 (PTI): State Bank of India Chairman Rajnish Kumar today 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 here.
The scrip made a weak debut at bourses, plunging nearly 13 per cent, against its issue price of Rs 755. SBI has invested Rs 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 Rs 1,000 crore in Yes Bank through a purchase of 100 crore shares.
Axis Bank will invest Rs 600 crore by buying 60 crore shares and Kotak Mahindra Bank Rs 500 crore through 50 crore shares.
Bandhan Bank will invest another Rs 300 crore through the purchase of 30 crore shares. IDFC First and Federal Bank have invested Rs 250 crore and Rs 350 crore, respectively, in the lender.
Meanwhile, Troubled private lender Yes Bank will be dropped from benchmark index Nifty 50, banking index Nifty bank and other Nifty indices from March 19, NSE Indices said today.
Earlier, the changes were scheduled to happen on March 27, NSE Indices, a subsidiary of the National Stock Exchange (NSE), said in a statement.
However, in light of the recent developments relating to Yes Bank and its reconstruction scheme, NSE Indices’ Index Maintenance Sub-Committee (IMSC) has decided to accelerate the removal of Yes Bank from Nifty 50 and Nifty Bank and also remove it from all Nifty equity indices from Thursday, March 19.
Shree Cement will replace the private lender in Nifty 50 and in Nifty bank index, Bandhan Bank will find a place. The troubled lender will also be removed from Nifty 100 and Nifty 500.
In Nifty 100, Adani Transmission will replace Yes Bank, while in Nifty 500, Sterling and Wilson Solar will be added.
Earlier in February, NSE Indices had announced that on account of Yes Bank being excluded from Nifty 50 and Nifty 100, it was being included in Nifty Midcap 150, Nifty Midcap 50, Nifty Midcap 100, Nifty MidSmallcap 400 and Nifty Midcap Liquid 15 from March 27.
In light of the decision to exclude Yes Bank from all our equity indices, the lender will not be included in these indices from March 27 and the replacements of Yes Bank in these indices will be announced in due course.