‘Operations to be resumed next week’

Yes Bank Rescue

NEW DELHI: The government on Saturday notified the scheme of reconstruction for cash-strapped Yes Bank Ltd, paving the way for the lender to resume full operations.

The private sector bank has been put under a moratorium by the Reserve Bank of India since March 5 which has restricted deposit withdrawals. Under the terms of the notified scheme, this moratorium will now be lifted at 6 p.m. on March 18.

According to the government notification, Yes Bank’s authorized share capital will be revised upwards from Rs 1,100 crore to Rs 6,200 crore. The number of total equity shares will stand altered to 3,000 crores of Rs 2 each aggregating to Rs 6,000 crore. Authorized preference share capital shall continue to be Rs 200 crore.

The investor bank, which in Yes Bank’s case is the State Bank of India, will pick up to 49 percent of the equity, while private investors will be allowed to buy the rest. SBI will have to hold at least a 26 percent stake in the private bank for a minimum period of three years. Similarly, the other investors will also be mandated to have a similar lock-in period for 75 percent of their investment in the bank. As per the notification, this lock-in will also be for all existing shareholders who are holding 100 or more shares in the private sector bank. (IANS)

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