Yes Bank’s books get SBI’s thumbs up Fada moves SC for extension BS-IV vehicle sale till May-end

The country’s largest lender State Bank of India (SBI) on Tuesday said that there was a lot of due diligence done on the books of Yes Bank and that they have found nothing wrong in the books of the beleaguered lender.

“Whatever has been declared by the bank is a true representation of the bank’s financial position,” Mr Kumar told reporters at Yes Bank’s conference while ruling out a forensic audit lender.

Mr Kumar also said that Yes Bank may receive a second round of funding in the future. “The current `10,000 crore worth funds would lead to meeting all capital ratios. So we can always do another round of fund raise a little later,” the SBI chairman said.

Mr Kumar also said that SBI will not sell even a single share of the 49 per cent stake it has picked up in Yes Bank.

Based on the Yes Bank’s reconstruction scheme, for the rescued

State Bank of India and half a dozen domestic financial institutions have infused `10,000 crore as new equity capital into Yes Bank.

According to the scheme, SBI has to hold at least 26 per cent stake for the next three years while other private sector banks who have put in a total of `3,950 crore so far, would have to hold at least 75 per cent of their investment for a three year period.

SBI has been allotted 605 crore shares in Yes Bank for an investment of `6,050 crore and is the largest shareholder in the restructured bank. “Although I cannot talk about other banks but regarding SBI, not even a single share will be sold in three years”.

Addressing the media, Yes Bank’s administrator Prashant Kumar said that Yes Bank will be fully functional from Wednesday 6 pm adding that there was no need to withdraw money in panic. “There is absolutely no issue on liquidity side from Yes Bank, all our ATMs are full of cash,” Prashant Kumar said.

The Federation of Automobile Dealers Associations or Fada on Tuesday filed an application with the Supreme Court seeking extension of sale and registration of BS-IV vehicles till May 31, 2020, an extension of two months from March-end deadline to clear the stock of such models.

The automobile dealers’ body once again approached the Supreme Court, and has filed an interlocutory application along with an application seeking modification in the writ petition dated October 24, 2018.

In the petition, in the matter of MC Mehta versus Union of India and others, the apex court had directed that no motor vehicle conforming to emission standard BS-IV shall be sold or registered in the entire country with effect from

April 1, 2020. “We have submitted an application with the Supreme Court for extension of registration process of BS-IV vehicles till May 31, 2020,” said Fada president Ashish Harsharaj Kale, adding that “We are now seeking an urgent hearing on the matter.”

The two-wheeler BS-IV inventory at dealerships across the country stood at around 8.35 lakh units valued at around `4,600 crore, Mr Kale pointed out.