PRIVATE BANKS JOIN SBI TO RESCUE YES BANK
Bureau,Odishabarta
Mumbai:As the government on Saturday notified the reconstruction scheme for Yes Bank, major private banks have come out with investment commitments for the crisis-hit bank.
Federal Bank on Saturday announced that it would invest Rs 300 crore in YES BANK by subscribing to its 30 crore shares of Rs 2 each for cash, at a premium of Rs 8 per equity share.
With this, six private banks have now committed investment of Rs 3,700 crore in the cash-strapped private sector bank.
On Friday, ICICI Bank and Housing Development Finance Corporation Ltd announced that they will be investing Rs 1,000 crore each in Yes Bank’s equity. Axis Bank and Kotak Mahindra Bank will be investing Rs 600 crore and Rs 500 crore respectively, while Bandhan Bank will be investing Rs 300 crore.
State Bank of India’s board has already approved up to 49 per cent stake purchase in Yes Bank, as per the RBI’s reconstruction scheme for the bank. It had said on Thursday that an investment of Rs 7,250 crore would be made in Yes Bank to pick up 725 crore equity shares.
Both ICICI and HDFC Bank are likely to have five per cent shareholding each in the restructured Yes Bank. In its regulatory filing, HDFC Bank had said its investment of Rs 1,000 crore would be completed by March 31.
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