Mumbai: Rajnish Kumar, the State Bank of India Chairman says SBI will not sell any of Yes Bank share for the next three years 

The SBI has been allotted 605 crore shares in Yes Bank for an investment of Rs 6,050 crore and is the largest shareholder with a stake of 49 per cent.

Its statement gains significance as the reconstruction plan for Yes Bank said that the largest public sector bank will have to hold at least 26 per cent stake for the next three years. Concerns of a possible profiteering by the investing banks have arisen as the prevailing share price of Yes Bank is nearly six times the price at which the domestic banks have subscribed to its shares. Yes Bank shares closed at Rs 58.65 a piece on BSE on Tuesday.

Even if such entities want to sell the 25 per cent of their investment now, which they are free to execute under the scheme, they would end up not only recovering their entire investment but also making windfall gains.

Among the private players, ICICI Bank and Housing Development Finance Corporation committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank committed to invest Rs 600 crore and Rs 500 crore, respectively. Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.

Rajnish Kumar said that it was decided that a two-stage funding should be carried out for Yes Bank as trying to raise the total required capital in one go would have extended the moratorium on the private sector lender.

As the bank has already raised Rs 10,000 crore, it has now adequate space to complete the second stage funding by bringing in more investors.