SBI will take 49% stake in Yes Bank, cabinet has approved restructuring: Sitharaman
Sitharaman said SBI is also in talks with other prospective investors for Yes Bank
India's finance minister Nirmala Sitharaman said today that the Union cabinet has approved restructuring scheme of Yes Bank.
The finance minister said State Bank of India(SBI) will take 49 per cent stake in Yes Bank in a bid to revive the bank.
"There will be three years lock-in period for SBI for up to 26 per cent of their investment. For others, there will be a lock-in period of three years of 75 per cent of their investment," Sitharaman asserted.
Sitharaman said SBI is also in talks with other prospective investors.
"The moratorium will be lifted within three days of notifying the scheme," the finance minister said, adding,"A new board, having at least two directors of SBI, will take over within seven days of the issuance of notification."
"Authorised capital has been raised from Rs 1,100 crores to Rs 6,200 crores of Yes Bank to accommodate immediate and subsequent raising of capital requirements," Sitharaman added.
Yes Bank shares in the morning had risen ten per cent after SBI said it will infuse Rs 7,250 crore. The stock went up 9.98 per cent to Rs 27.55 on the BSE and 10.57 per cent to Rs 27.70 on NSE.