In a press conference, FM has announced a rescue plan for yes bank. It will be reconstructed now. SBI will take 49% stake in the restructured bank.
The reconstructed bank will have following composition.
From the Appointed date, in ‘clause V’ of the Memorandum of Association of the Reconstructed bank, the Authorised Capital shall stand altered to Rs.50,00,00,00,000 (Rupees Five thousand crore only) and number of equity shares will stand altered to 24,00,00,00,000 ( two thousand four hundred crore only) of Rs.2/- (Rupees Two only) each aggregating to Rs.48,00,00,00,000 (Rupees Four thousand eight hundred crore only).
The Investor bank shall agree to invest in the equity of the Reconstructed bank to the extent that post infusion it holds 49% shareholding in the Reconstructed bank at a price not less than Rs.10/- (Rupees ten only) [Face value of Rs.2/- (Rupees two only) and premium of Rs.8/- (Rupees eight only)]. The Investor bank shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital.
Read the full reconstructions plan.
