Easing the pain of Yes Bank depositors, the moratorium placed on the troubled private-sector lender may be lifted on Wednesday, March 18.
Easing the pain of Yes Bank depositors, the moratorium placed on the troubled private-sector lender may be lifted on Wednesday, March 18. According to the gazette notification published by the Ministry of Finance on Friday evening, the moratorium shall cease to have an effect on the third working day at 18:00 hours from the date of commencement of the Yes Bank reconstruction scheme. The Union Cabinet on Friday approved the reconstruction scheme of cash-strapped Yes Bank, which includes a bail-out and equity investment by India’s largest PSU bank State Bank of India (SBI). Currently, the withdrawal limit for Yes Bank customers has been capped at Rs 50,000 by the Reserve Bank of India till April 3.
On Friday evening, HDFC along with ICICI Bank, Axis Bank, and Kotak Mahindra Bank announced their plans to jump into the bail-out plan of cash-starved Yes Bank. While ICICI Bank and HDFC will invest Rs 1,000 crore each picking equity in excess of 5 per cent; Axis Bank will invest Rs 600 crore and Kotak Mahindra Bank will pick up 50 crore shares for Rs 500 crore. India’s largest public-sector lender SBI has got approval from its board to purchase 725 shares at Rs 10 per share, it informed the stock exchanges on Thursday.
Yes Bank, although, has called-off its planned press briefing today but the lender is scheduled to announce its third-quarter results for this fiscal. Yes Bank had earlier last month delayed its third-quarter results announcement as it vigorously hunted for capital from private investors. The Reserve Bank of India (RBI), placed the troubled lender under a moratorium last week and superseded its board. Former CFO of SBI, Prashant Kumar was appointed as Yes Bank Administrator and given the charge of leading the troubled bank out of its woes.
According to the reconstruction scheme approved by the Union Cabinet, SBI will have a three year lock-in period during which it has to stay invested up to 26 per cent of its initial investment. Private investors will have the same three-year lock-in period with 75 per cent of their initial investment locked-in for the same period.