New Delhi:Yes Bank’s reconstruction plan approved by the Union Cabinet on Friday, under which the State Bank of India will pick up 49 per cent of the equity, while private investors will be allowed to buy the rest.
Finance Minister Nirmala Sitharaman informed, the Cabinet decided that the SBI will hold at least 26 per cent stake in the private bank for a minimum of three years. The other investors also be mandated to have a similar lock-in period for 75% of their investment in the bank similarly.
The authorised share capital of the Yes Bank will be revised upwards from Rs 1,100 crore to Rs 6,200 crore, details of the scheme will be notified soon.
It is also said that Yes Bank's moratorium will be lifted at 16.00 hours, after three working days of the scheme being notified.
The office of the administrator shall also stand vacated after seven days from the cessation of moratorium and the new Board will take over the bank.
New Board will have two members from the SBI.
