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SBI chairman says, ‘Yes Bank will not be allowed to fail’

Yes Bank’s shares drowned over 80 per cent over the past year amid worries about its asset quality and uncertainty about its efforts to raise new capital.

SNS | New Delhi |

Chairman of country’s biggest lender, State Bank of India, Rajnish Kumar recently expressed certainty in ‘some solutions emerging’ for the troubled Yes Bank, reports stated.

As per a Bloomberg report, Kumar was quoted as saying that the private-lender is a major player in the market with an almost $40 billion balance sheet and its failure would not be good for Indian economy.

“A bank of that size, if it is allowed to fail, there’s a problem,” he said. “And I am sure that some solutions will emerge,” Kumar was quoted as saying in the same report.

Yes Bank’s shares drowned over 80 per cent over the past year amid worries about its asset quality and uncertainty about its efforts to raise new capital. The lender is barely above the RBI’s notified core equity capital ratio of 8 per cent.

Share price for the Yes Bank at 1.31 pm was at Rs 40.85, up by 6.37 per cent.

(With input from agencies)