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Union Cabinet clears draft resolution scheme for YES Bank revival

The scheme was announced a day after the RBI imposed a month-long moratorium on YES bank

BS Web Team  |  New Delhi 

Photo- Dalip Kumar
State Bank of India (SBI) on Thursday said it would infuse Rs 7,250 crore into ailing YES Bank. Photo- Dalip Kumar

The Union Cabinet on Friday cleared a draft resolution scheme for cash-starved YES Bank, according to TV reports. Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for the lender, according to which the strategic investor in the bank would pick up 49 per cent stake and not reduce holding to under 26 per cent before three years from the date of capital infusion.

The scheme was announced a day after the imposed a month-long moratorium on the bank, restricting withdrawals to Rs 50,000 per depositor till April 3.

State Bank of India (SBI) on Thursday said it would infuse Rs 7,250 crore into ailing and pick 7,250 million shares at Rs 10 each, and its shareholding would remain within 49 per cent of the paid-up capital of the private sector lender.

ALSO READ: SBI to invest Rs 7,250 cr in crisis-hit YES Bank as part of RBI rescue plan

“The executive committee of the central board at its meeting on March 11 accorded approval for purchase of 7,250 million shares of at a price of Rs 10 a share, subject to regulatory approvals,” said in an exchange filing on Thursday

First Published: Fri, March 13 2020. 11:13 IST
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