Mumbai: The country’s largest lender State Bank of India Thursday said it has received approval to buy Rs 7,250 crore worth of shares in crisis-hit Yes Bank.
“The executive committee of central board (ECCB) at its meeting held on 11 March accorded approval for purchase of 725 crore shares in Yes Bank at a price of Rs 10 per share subject to all regulatory approvals,” SBI said in a regulatory filing.
The bank’s shareholding in Yes Bank will remain within 49 per cent of the paid up capital of the private sector lender.
Last week, the Reserve Bank of India had announced a draft scheme of reconstruction for cash-starved Yes Bank.
The scheme said the strategic investor in the bank will have to pick up 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion.
The scheme was announced a day after the RBI imposed a moratorium on the bank, restricting withdrawals to Rs 50,000 per depositor till 3 April.
Also read: For 9 yrs, Yes Bank board was led by ex-IAS officers, yet its lending grew unchecked
Very bad. Sitharaman, FM, should think over the requirement for keeping operative the accounts. It is responsibility of the account holders and not of the bank.
Mob term for this “you scratch my back and I will do the same for your back”