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HomeEconomySBI willing to invest in Yes Bank, participate in reconstruction scheme: RBI

SBI willing to invest in Yes Bank, participate in reconstruction scheme: RBI

The central bank imposed a moratorium on the debt-ridden Yes Bank, restricting withdrawals to Rs 50,000 per depositor till 3 April.

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Mumbai: The RBI Friday said the State Bank of India (SBI) has expressed willingness to invest in crisis-ridden Yes Bank.

In a draft ‘Yes Bank Ltd. Reconstruction Scheme, 2020’, the RBI also said the strategic investor 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.

From the appointed date, the authorised capital of the private sector bank would stand altered to Rs 5,000 crore and number of equity shares to 2,400 crore having face value of Rs 2 each.

“The investor bank shall agree to invest in the equity of the Reconstructed bank to the extent that post infusion it holds 49 per cent shareholding in the Reconstructed bank at a price not less than Rs 10 (Face value of Rs 2) and premium of Rs 8,” said the draft on which comments from stakeholders have been invited till March 9.

It further said SBI has “expressed its willingness” to make investment in Yes Bank and participate in its reconstruction scheme.

The draft comes a day after the RBI imposed a moratorium on the bank, restricting withdrawals to Rs 50,000 per depositor till April 3.

The RBI has also superseded the board of the bank, which is now being headed by former deputy managing director and CFO of SBI Prashant Kumar.


Also read: Yes Bank depositors’ money safe, RBI working on early resolution, says Nirmala Sitharaman


 

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