YES Bank has been in the doldrums for a while, with potential fundraising efforts falling apart, analysts smelling blood with SELL calls and cash strapped shareholders such as SICAL Logistics selling shares on invocation of pledges. SBI Chairman Rajnish Kumar however, roused up investors today by saying that the struggling private bank would not be allowed to fail - a move many observers have been recommending, on fears that a fall for YES Bank would set off a contagion in Indian financial markets. YES Bank's loan book size stands at approximately $40 billion.
"I am sure that some solutions will emerge", the SBI Chairman reportedly said with regard to the Bank, adding that the Bank failing would be a negative for the Indian economy. Investors and analysts are closely watching for any announcement around fundraising and rescue leading up to the EGM scheduled for February 7. YES Bank is in 20 SWOT screeners, with the majority in the weakness category.