Yesbank Gets 2nd Extension
RBI okays November 30 deadline for launch of bank by Rabo-led team
The Reserve Bank of India (RBI) has given four months extension (till November 30) to the consortium of Rabobank Nederland, Ashok Kapur and Rana Kapoor to set up their bank.
The new venture, called YesBank, is likely to achieve financial closure by the end of the month and will be headquartered in Mumbai.
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The promoters had approached the RBI for an extension around two weeks ago. This is the second time that an extension was given to the new venture.
Earlier, on February 6, the RBI had issued a banking licence to Kotak Mahindra Finance Ltd. The RBI had, at that time, given six months extension to the YesBank promoters to start off.
Ashok Kapur and Rana Kapoor will together have 51 per cent stake in YesBank, while Rabobank Nederland will have a 20 per cent stake.
Key employees of the bank will have a 3-4 per cent stake with the remaining 25 per cent to be placed with private equity investors.