Private banks join SBI to rescue Yes Bank

Mumbai:

As the Union Cabinet on Friday approved the RBI’s reconstruction scheme for Yes Bank, major private banks have come out with investment commitments into the crisis-hit bank.

Four top Indian private banks, HDFC, ICICI, Kotak Mahindra and Axis Bank have announced investments which

cumulatively account to Rs 3,100 crore. ICICI Bank was the first private lender to have confirmed its participation in

the SBI-led restructuring plan for Yes Bank.

Both ICICI and HDFC Bank would invest Rs 1,000 crore each. Axis Bank and the Uday Kotak-led Kotak Mahindra

Bank would put in Rs 600 crore and Rs 500 crore, respectively. State Bank of India’s board has already approved 49

percent stake purchase in Yes Bank, as per the RBI’s reconstruction scheme for the bank. It had said on Thursday

that an investment of Rs 7,250 crore would be made in Yes Bank to pick up 725 crore equity shares.

Both ICICI and HDFC Bank are likely to have five percent shareholding each in the restructured Yes Bank. In its

regulatory filing, HDFC Bank informed that its investment of Rs 1,000 crore would be completed by March 31.

“This investment is likely to result in ICICI Bank Limited holding in excess of 5.0 percent shareholding in Yes Bank

Limited, with the final shareholding to be determined based on the final scheme of reconstruction and share

issuance thereunder,” ICICI Bank said in its regulatory filing. (IANS)

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