Yes Bank rescue plan notified; moratorium to end in 3 working days, says Centre

The Central government on Saturday notified the reconstruction scheme for crisis-hit Yes Bank and stated that the moratorium will be lifted within a period of "three working days".

'Yes Bank Ltd Reconstruction Scheme, 2020' was notified by Union Finance Ministry on Friday.

The Reserve Bank of India had imposed a month-long moratorium on the bank and restricted withdrawals to Rs 50,000 per depositor till April 3, citing its poor financial health due to bad loans.

The note issued by Union Finance Minister Nirmala Sitharaman also stated that a new board, having at least two directors of State Bank of India, will take over within seven days of the issuance of notification.

Notably, the Boards of Directors of Axis Bank and HDFC on Friday approved to invest up to Rs 600 crore and Rs 1,000 crore respectively in Yes Bank.

According to an official statement, Axis Bank will be acquiring up to 60 crore equity shares of Rs 2 each of Yes Bank for a consideration of Rs 10 per share for an aggregate consideration of Rs 600 crore.

The Board of Directors of HDFC yesterday had also given the approval to invest in 100 crore equity shares of Rs 2 each of Yes Bank for a consideration of Rs 10 per share for an aggregate consideration of Rs 1,000 crore.

As on September 30, 2019, Yes Bank had total assets of Rs 3,46,575 crore which includes an advance book of Rs 2,24,505 crore. The deposit base of Yes Bank was Rs 2,09,497 crore.

Yes Bank generated a loss of Rs 486 crore on a total income of Rs 17,421 crore for H1 FY20. The results for Q3FY20 have not yet been released. Earlier, the Reserve Bank of India (RBI) had placed in the public domain a draft scheme of reconstruction for Yes Bank on March 6.