Finance Minister Nirmala Sitharaman mentioned on Friday that the Union Cabinet had accepted the reconstruction scheme for Yes Bank as proposed by Reserve Bank of India. “State Bank of India will invest up to 49 per cent equity in Yes Bank and other investors are also being invited,” the Finance Minister mentioned, addressing the media after a gathering of the Union Cabinet. The Finance Minister’s feedback come at a time the RBI has taken management of Yes Bank and capped withdrawals from its accounts at Rs 50,000 until April three so as to defend the depositors.
“The notification shall come out and the moratorium shall cease on the third working day from the date of the notification, at 1800 hours,” the Finance Minister mentioned, whereas talking to reporters in regards to the present cap on withdrawals from Yes Bank accounts.
She additionally mentioned that the administrator’s workplace can be vacated after seven calendar days following the lifting of moratorium, and a brand new board can be constituted.
As a part of the RBI-backed rescue plan for the troubled non-public sector lender, State Bank of India (SBI) will purchase as much as 49 per cent stake in Yes Bank, and can be required to keep up a minimal holding of 26 per cent in Yes Bank for 3 years.
All the present Yes Bank’s staff can be retained as a part of the deal.
In a separate improvement, ICICI Bank’s board accepted funding of Rs 1,000 crore in Yes Bank by way of fairness. ICICI Bank mentioned it’s going to purchase 100 crore fairness shares of Yes Bank at Rs 10 per share.
State Bank of India, the nation’s largest lender by belongings, had the day gone by accepted a plan to buy 725 crore Yes Bank shares at a worth of Rs 10 apiece.
Struggling underneath a rising pile of dangerous debt, Yes Bank had been attempting to lift the required capital to remain above regulatory necessities.