Yes Bank withdrawal limit to end on March 18
Moratorium on Yes Bank to be lifted
The moratorium on Yes Bank will be lifted by March 18 and the new board led by CEO and MD Prashant Kumar will be put in place by the end of this month, the government said. With the notification, the moratorium on withdrawals will be lifted after three working days at 6 pm while a new board of directors will be constituted within seven calendar days.
Govt notifies Yes Bank reconstruction scheme
The government notified the Yes Bank Reconstruction Scheme 2020 late on Friday. Under the plan, SBI cannot reduce its stake in the bank to below 26 per cent for a period of three years, while other investors and existing shareholders will have a lock-in period of three years for 75 per cent of their investment in Yes Bank. However, the lock-in period will not apply to shareholders with less than 100 shares.
Who else will join the board?
Apart from Kumar, the reconstructed board of Yes Bank will have Sunil Mehta (former PNB non-executive chairman) as non-executive chairman, and Mahesh Krishnamurthy and Atul Bheda as non-executive directors.
Good news for employees!
There will be no change in the employment structure and the offices and branch network of the reconstructed bank, unless deemed necessary by the new board. As per the scheme, there will be no change in the liabilities of the bank.
About SBI stakes
State Bank of India (SBI), which will hold up to 49 per cent stake in Yes Bank, will nominate two directors on the newly-constituted board and RBI can appoint one or more additional directors. Any investor, other than SBI, with voting right of 15 per cent in the private lender can nominate one director on Yes Bank's board.
Who is investing how much in Yes Bank
ICICI Bank, Housing Development Finance Corp Ltd, Axis Bank, Kotak Mahindra Bank and Bandhan Bank will also join the SBI-led consortium and invest in Yes Bank. HDFC will invest Rs 1,000 crore in Yes Bank through the purchase of 100 crore shares, Axis Bank will invest Rs 600 crore by buying 60 crore shares, Kotak Mahindra Bank Rs 500 crore through 50 crore shares and Bandhan Bank another Rs 300 crore through the purchase of 30 crore shares.