Bandhan Bank will acquire 30 crore equity shares of Yes Bank at Rs 10 each.
The board of directors of Bandhan Bank on Friday (13 March 2020) approved an equity investment of Rs 300 crore for acquiring upto 30 crore equity shares of Yes Bank, for cash, at Rs 10 each, under the proposed Scheme of Reconstruction of Yes Bank under the Banking Regulation Act, 1949, subject to regulatory and government approval, if any.
The investment would constitute less than 5% of the new issued and paid-up equity share capital of Yes Bank. As per the scheme of reconstruction, 75% of the total investment of the bank would be locked in for 3 years. The investment would be completed by 31 March 2020.
The Union Cabinet on Friday, 13 March 2020, approved the reconstruction scheme for Yes Bank. The bank board will take over after the 7 days once the moratorium is lifted through the notifications. Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for Yes Bank.
Earlier, RBI superseded the board of Yes Bank and imposed a month-long moratorium. RBI also capped Yes Bank depositor's withdrawals at Rs 50,000 per account for a month. It also appointed former chief financial officer (CFO) of SBI, Prashant Kumar as the administrator of Yes Bank.
Shares of Bandhan Bank fell 2.06% to Rs 327.90 and Yes Bank rose 2% to Rs 25.55 on Friday, 13 March 2020.
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