Yes Bank share price jumped over 40 per cent to Rs 22.80 apiece on BSE in Monday’s trade after the government allowed State Bank of India (SBI) to pick up 49 per cent stake in the cash-strapped private sector lender Yes Bank. Last week, the Reserve Bank of India (RBI) has announced a reconstruction plan for the cash-strapped Yes Bank. The central bank also announced that India’s largest Bank, SBI will invest up to 49 per cent stake in the reconstructed bank. The reconstructed plan is a draft on which RBI has sought comments from both SBI and Yes Bank. SBI is likely to submit its reply on the reconstruction plan today.
At 11.45 AM, Yes Bank shares were trading 31 per cent higher at Rs 21.20 apiece on BSE in today’s trade. From its 52-week low, touched on Friday in the intraday trade, Yes bank share price has risen 310 per cent. However, the private lender shares have tumbled 92 per cent from its 52-week high of Rs 285.90, touched on April 3, 2019. “The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post-infusion it holds 49 per cent shareholding in the reconstructed bank at a price not less than Rs 10 (Face value of Rs 2) and premium of Rs 8,” RBI’s proposal document stated.
Last week on Thursday, RBI imposed a 30-day moratorium on Yes Bank till April 3, 2020 and superseded the board. Under which the cash-strapped private lender will not be allowed to grant or renew any loans. However, Union Finance Minister Nirmala Sitharaman has assured the Yes bank depositors on Friday. “I am constantly in touch with the Reserve Bank and the steps that are taken in the interest of the depositors, the bank and the economy… the depositors can be assured that their money is safe,” Sitharaman said.