Takeover of Yes Bank by fgn lender threat to India's banking sovereignty: Cong

Time of India

6 days ago

Mumbai: Banking expert and senior Congress leader Vishwas Utagi on Friday said the takeover of private lender Yes Bank by a Japanese financial institution—Sumitomo Mitsui Banking Corporation—is a threat to India's banking sovereignty.
"Congress demands a judicial probe under the Commission of Inquiry Act into the dubious foreign takeover," said Utagi, veteran trade union leader who recently joined the party. He said Congress has expressed deep concerns and strong opposition to the recent developments surrounding the takeover of Yes Bank from an SBI-led consortium of lenders, which had rescued the beleaguered bank in 2020. Utagi said media reports indicate that the Japan-based organisation has already invested Rs 13,000 crore for a 20% stake in Yes Bank and is now preparing to infuse another Rs 30,000 crore to gain majority control.
"Why are RBI and the Indian government allowing a foreign bank to take over Yes Bank? Yes Bank's takeover must be stopped," he said.
Yes Bank, India's sixth largest private sector bank, was restructured in 2020 under RBI's supervision following a major liquidity crisis and regulatory issues under its former CEO Rana Kapoor. —Prafulla Marpakwar