Distressed assets

Why Yes Bank’s bailout has panicked markets

State Bank of India’s agreement to buy Yes Bank stems from the central bank’s aspiration to maintain trust in the country’s financial system. However, as bank share prices and deposits fall, not everyone is reassured.

State Bank of India (SBI), the nation’s largest state-owned financial institution, along with a six private sector banks that includes Housing Development Finance Corporation (HDFC), Kotak Mahindra Bank, and Axis Bank will together account for a 75% ownership of Yes Bank, the fourth largest private sector bank in India following a near $1.4 billion agreement reached this month. 

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