 "Federal Bank to invest Rs 300 cr in Yes Bank at Rs 10 per equity share")
Kerala-based Federal Bank Limited has decided to invest Rs 300 crore in Yes Bank and has issued an equity commitment letter to subscribe to the ailing lender's equity shares.
The Bank said it has issued an equity commitment Letter for subscription of 300 million shares of Yes Bank at a price of Rs 10 per equity share.
The commitment is pursuant to the scheme of reconstruction of Yes Bank proposed by the Reserve Bank of India under section 45 of the Banking Regulation Act, 1949 and subject to regulatory approvals and other conditions as set out in the Letter.
On Friday, the Union Cabinet, headed by Prime Minister Narendra Modi, approved the Yes Bank rescue plan backed by the State Bank of India (SBI).
SBI has proposed to invest Rs 7,250 crore in Yes Bank by purchasing 7,250 million shares at Rs 10 apiece.
LIC, HDFC, ICICI, Axis and Kotak Mahindra and the other investors have already come forward to invest in the cash-starved Yes Bank.
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