Bandhan Bank to invest ₹300 crore in Yes Bank
MUMBAI: Private sector lender Bandhan Bank on Saturday said it will invest ₹300 crore in Yes Bank under the bank’s reconstruction scheme, taking the total investment proposal to ₹10,650 crore.
The bank said it will acquire 30 crore equity shares of ₹2 each at a premium of ₹8 per equity share, constituting less than 5% of the new issued and paid-up equity share capital of Yes Bank.
“As per the Scheme of Reconstruction, 75% of the total investment of the bank would be locked in for three years,” Bandhan Bank said in a regulatory filing.
According to the proposal, SBI will infuse ₹7,250 crore in Yes Bank, HDFC Ltd and ICICI Bank Ltd will infuse ₹1,000 crore each, Axis Bank will infuse ₹600 crore and Kotak Mahindra Bank Ltd will infuse ₹500 crore.
Under the proposed scheme, SBI will not be able to reduce its holding below 26% before for the next three years. The authorised capital of the reconstructed bank will stand altered at ₹6,200 crore.
On 5 March, Mint reported that private banks including ICICI bank, HDFC, Axis bank and Kota Mahindra Bank will be part of the SBI consortium to invest in the troubled Yes Bank. The report also mentioned that LIC could put in some capital into the private sector lender.
RBI had imposed a moratorium on Yes Bank late evening on 5 March, following it up with a draft reconstruction scheme the next day, asking depositors and creditors to share their views by 9 March.
The moratorium imposed on Yes Bank will be lifted, effective 18 March, 6 pm, the government has notified.
[“source=livemint”]
