New Delhi: Yes Bank is set to get a lifeline as the Union Cabinet has approved the rescue plan for the crisis-ridden private sector lender backed by the State Bank of India (SBI).
The Central Government has notified the Yes Bank reconstruction scheme as per which the moratorium on the troubled private sector lender will be lifted on March 18.
“The order of moratorium on the reconstructed bank issued by the Government of India in the Ministry of Finance, Department of Financial Services vide notification number S.O. 993(E), dated the 5th March, 2020 shall cease to have effect on the third working day at 18:00 hours from the date of commencement of this Scheme,” the notification said.
Yes Bank’s authorised share capital will stand altered to Rs 6,200 crore from Rs 1,100 crore earlier. The number of total equity shares will stand altered to 3,000 crore of Rs 2 each. Authorised preference share capital shall continue to be Rs 200 crore, it added.
State Bank of India, termed as the ‘investor bank’ shall invest in the reconstructed bank at a price of Rs 10, subject to the “condition that post infusion of equity capital, the equity shareholding of the investor bank shall not be less than 26 percent and not more than 49 percent, the notification further stated.
Yes Bank is currently under a Reserve Bank of India advised moratorium, which includes restricting withdrawals to Rs 50,000 per depositor till April 3.
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