The Union Ministry of Finance on Friday notified the 'Yes Bank Ltd Reconstruction Scheme, 2020' for the salvation of the crisis-hit lender. The central government stated that the moratorium imposed on Yes Bank by the Reserve Bank of India (RBI) will be lifted within a period of three working days, and a new board, having at least two directors of the State Bank of India (SBI), will take over within seven days of the issuance of the notification.
Earlier, the RBI has proposed a reconstruction scheme under which the SBI will pick up a 49% stake in the crisis-ridden lender as part of a government-approved bailout plan.
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.
Notably, the Reserve Bank of India has restricted the withdrawal limit to Rs 50,000 per account for the bank till April 3, 2019, for Yes Bank customers. The directive came into effect from 6 AM on March 6. The RBI also superseded Yes Bank's Board of Directors.
Earlier on March 8, the Enforcement Directorate (ED) arrested Yes Bank founder Rana Kapoor for money laundering after several hours of questioning.
On Friday night, the ED searched Rana's residence in the upscale 'Samudra Mahal' complex in the Worli area and had grilled him there too.
His role is also being probed in connection with the disbursal of a loan to a corporate entity and the subsequent alleged kickbacks that were reportedly received in his wife's accounts.
(With ANI inputs)
