State Bank of India to buy shares worth 7,250 crore rupees of cash-strapped Yes Bank

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Mar 12, 2020

7:08PM

State Bank of India to buy shares worth 7,250 crore rupees of cash-strapped Yes Bank

@TheOfficialSBI

The State Bank of India today said that it will buy shares worth 7,250 crore rupees of the cash-strapped Yes Bank in accordance with the draft reconstruction scheme envisaged by the Reserve Bank of India. In a regulatory filing, SBI said, its board has permitted the purchase of the private lender's shares at a price of 10 rupees per share subject to all regulatory approvals. SBI’s shareholding in Yes Bank will remain within 49 percent of the paid-up capital.

According to RBI’s reconstruction scheme, the strategic investor was not only supposed to pick up 49 percent stake but assure that the holding will not fall below 26 percent for a minimum period of three years from the date of capital infusion.

The scheme was announced a day after RBI imposed a moratorium on the Yes Bank, restricting withdrawals to 50,000 rupees till the 3rd of April, while also superseding the bank’s board.