SBI, seven other lenders to invest ₹10,000 crore to revive Yes Bank

While SBI has invested in ₹6,050 crore equity capital, ICICI Bank and mortgage lender Housing Finance Development Corporation (HDFC) has put in Rs 1,000 crore each

A security guard stands outside a Yes Bank branch at its headquarters in Mumbai. File

State Bank of India (SBI) - the country’s largest lender, along with seven other financial institutions have put in ₹10,000 crore investment in troubled Yes Bank in bid to revive the troubled private sector bank.

 

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While SBI has invested in ₹6,050 crore equity capital, ICICI Bank and mortgage lender Housing Finance Development Corporation (HDFC) has put in Rs 1,000 crore each.

Axis Bank - the third largest private sector bank - has invested ₹600 crore, followed by other private lenders Kotak Mahindra Bank (₹500 crore), Federal Bank and Bandhan Bank (₹300 crore each) and IDFC First Bank (₹250 crore).

In a late night notification to the exchanges, Yes Bank said 1000 crore equity shares have been allocated to these lenders.

“The Administrator of YES Bank Limited has received and executed equity commitment letters …towards investment into YES Bank Limited,” the notification. Last week, Yes Bank was been put under moratorium by the government, following which the board was superseded by Reserve Bank of India and an administrator was appointed.

SBI, as per the Reserve Bank of India reconstruction scheme of Yes Bank, cannot reduce its stake below 26% before three years from March 14, 2020.

“395,00,00,000 (three hundred and ninety five crore) equity shares have been issued and allotted to the investors listed below (each an “investor”) for an aggregate subscription consideration of INR 39,50,00,00,000 (Rupees three thousand nine hundred and fifty crore only), calculated at a share price of INR 10 (Indian Rupees Ten Only) per equity share comprising of (INR 2 (Indian Rupees Two Only) face value and INR 8 (Indian Rupees Eight Only) premium),” Yes Bank in the communication to the exchanges.

According to the reconstruction scheme which has been approved by the government, 75% equity shares allotted to each investor will be lock for three years from March 13, 2020.

The moratorium on Yes Bank will be lifted on 18 March .