Investors of the company are breathless due to the crisis over Yes Bank, the country’s fifth-largest bank. However, investors have breathed some relief after coming to the State Bank of India (SBI) to save it. The stock has gained following the statement of SBI Chairman Rajnish Kumar in this case, which hit a low in Friday’s trading. Currently, this stock is trading well below its all-time high and in such a situation, investing in this stock can prove to be a profitable deal in the coming time. Prior to this, the case of Satyam Computer was also similar, in which investors earned good returns.
Shares climbed with SBI assurance
Yes Bank shares saw a rise of about 35% on the Nifty in Monday’s business. The stock closed slightly at 55% after recovering slightly to 83% on Friday. Investors were selling in the midst of uncertainties about Yes Bank’s future, but there have been many assurances in two days. SBI has introduced its plan to overcome this crisis. Apart from this, being at its lower levels is also attracting many investors.
5.5 lakh crores Market Cap
Consider the ledger of this company’s stock, 52 weeks ago it was at a high of Rs 285, while on Friday it reached Rs 5.55. The company has a market capitalization of Rs 5,419.75 crore. At the same time, the company’s stock on NSE was 52 weeks ago at Rs 286 and, while on Friday it reached Rs 5.65.
This is SBI’s plan
Rajnish Kumar told that Yes Bank needs 20 thousand crores and at present, an investment of 2450 crores has been planned. He said that this is an opportunity for those who want to invest in SBI. Rajnish Kumar said that his effort is to get the investment plan passed before the Reserve Bank’s deadline.
Rajnish Kumar while elaborating on the investment plan of SBI said that after considering the investment plan, we will again go to the Reserve Bank on March 9. He said that SBI has told the Bombay Stock Exchange that the SBI Board has given in-principle approval to invest in Yes Bank. On Friday, the Reserve Bank of India (RBI) announced a draft plan to restructure the cash-strapped Yes Bank.
Satyam Computers Case
Earlier, the case of Satyam Computers was also similar. Whoever invested in this sinking company a decade ago had been profitable. Actually, after the scam came to light, its founder Ramalinga went to jail, but the future of the company hanged in the balance. Later, Tech Mahindra announced the takeover of the company, after which the stock of Satyam, which had fallen to a low level, suddenly rose and its investors became rich.
The Rs 7,800 crore scam of Satyam Computer was revealed in January 2009. Raju himself admitted that he had messed up the accounts and had shown a lot of profit over the years. In July 2009, Satyam was renamed Mahindra Satyam. On March 21, 2012, Mahindra Satyam was merged with Tech Mahindra after the board of the two companies approved the acquisition.