The Union Cabinet today approved a plan for the reconstruction of Yes Bank. While announcing it, Finance Minister Nirmala Sitharaman said that the scheme aims to safeguard depositors and ensure the stability of the financial system.

Sitharaman said that at the moment, SBI will invest for up to 49 per cent of the equity in Yes Bank. The RBI is trying to rope in more investors, she added.

Meanwhile, reports claimed that ICICI Bank will invest Rs 1000 crore for five per cent share in Yes Bank.

As per the reconstruction scheme, SBI will have a lock-in period of three years for only 26% of its stake in Yes Bank. For other likely investors, the lock-in period would be 75 per cent till three years.

She also said that the moratorium on Yes Bank will be lifted within 3 days of the notification on recast. The government will soon come out with a notification, Sitharaman added.

The govt has also decided to raise the authorised capital of Yes Bank to Rs 6,200 crore from Rs 1,100 crore.

RBI had imposed a month-long moratorium on Yes Bank and restricted withdrawals to Rs 50,000 per depositor till April 3, citing its poor financial health due to bad loans.

On Thursday, SBI said it would infuse Rs 7,250 crore into Yes Bank and pick 725 crore shares at Rs 10 a piece, and that its shareholding will remain within 49 per cent of the paid-up capital.