Yes Bank: Reconstruction scheme approved
New Delhi,14/3: The Central Cabinet today approved a plan prepared by the Reserve Bank of India to rehabilitate the private Yes Bank, which is in the midst of a financial crisis. The information was given by Union Finance Minister Nirmala Sitharaman after a cabinet meeting chaired by Prime Minister Narendra Modi. The bank’s recovery plan has been approved, taking into account the interests of the depositors and the financial system, including the interests of the depositors. The cutbacks imposed on Yes Bank within three working days of the announcement of the recovery plan will be lifted. In addition, the finance minister made it clear today that the board of the bank would be reinstated within seven days. The announcement has reassured depositors of Yes Bank.
Giving details of the recovery plan, Sitharaman said State Bank of India would buy a 49 percent stake in YesBank. In addition, other banks and investors also plan to invest in YesBank. All investors will have a 3-year lock-in period. This means that investors cannot withdraw their investment money for up to 3 years. Of the 49 percent of the investments made by State Bank of India, 28 percent cannot hold the interest for up to three years. In addition, the authorized capital of Yesu Bank has been increased from Rs 1,100 crore to Rs 6,200 crore.
