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Cabinet approves reconstruction scheme for Yes Bank

New Delhi, Mar 13 (GCCurrentAffairs) The Cabinet on Friday approved the Reserve Bank of India’s (RBI) reconstruction scheme for Yes Bank, Finance Minister Nirmala Sitharaman said here.
The decision keeps at its core depositors’ interest, providing stability to Yes Bank and keeping a stable financial banking system, she said.
The State Bank of India (SBI) will invest 49 percent of equity in Yes Bank, adding that other investors are also being invited, the finance minister said.
She said that that would be lock-in period of 3 years for SBI, adding that the lock-in period will be only for 26 per cent of investment by SBI.
For the rest of the investors, the three-year lock-in will be applicable for 75 percent of their investment in the private players.
The authorised capital itself of Yes Bank is being raised from Rs 1,100 crore to Rs 6,200 crore in order to accommodate immediate and subsequent capital raising requirement, the minister noted.
Within three days of the notification of the scheme the moratorium placed on Yes Bank will be lifted, the finance minister said.
Further, a new board will be constituted within seven days and at least two directors from SBI will also be a part of it

Source
Via UNI-India

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