SBI chief proposes Kotak Mahindra Bank for Yes Bank
Uday Kotak, the Chairman of Kotak Mahindra Bank ...
Uday Kotak, the Chairman of Kotak Mahindra Bank, seems to have become the ‘go to man’ for the industry, as the country’s top lender on Tuesday projected him to be the best bet to save the financially challenged Yes Bank. Earlier, Kotak was roped in to steer the crisis hit IL&FS Group’s reconstituted board.
In December, State Bank of India Chairman Rajnish Kumar projected Kotak Mahindra Bank as best suited to acquire the financially stressed Yes Bank. After an industry event here, Kumar was asked on the likelihood of SBI acquiring the much smaller bank. Kumar replied that such transactions require “deep pockets” which apparently Uday Kotak possesses. His reply is being speculated to be given to avoid taking over other banks, since SBI had earlier merged five smaller state-owned lenders with itself.
The suggestion might seem to be an attempt by SBI to shed any forthcoming responsibility that government might bestow it with, especially given the fact that the state-run lender has recently got funds from Essar Steel’s resolution. Nonetheless, it is not completely absurd, as some industry insiders say that it makes complete sense for Kotak, who is currently embroiled in an ongoing tussle with RBI over diluting his stake in Kotak Mahindra Bank.