Axis Bank To Invest Rs 600 Crores In Yes Bank Via Equity

294
After SBI and ICICI bank has announced their investment plans in Yes Bank, few more potential investors are coming forward to invest in Yes Bank now.

Axis Bank and HDFC Bank are now investing in Yes bank. Axis Bank will invest Rs 600 crore in the troubled Yes bank. As part of the restructuring plan of Yes Bank, Axis Bank will buy 60 crore shares of it for Rs 600 crore via equity. Apart from this, the housing finance company HDFC has also decided to invest Rs 1,000 crore in Yes Bank. Kotak Mahindra Bank will also invest Rs 500 crore in Yes Bank.

In a letter sent to the stock exchange, Axis Bank said in a meeting of its board of directors on 13th March and approved the proposal to purchase 60 crore shares of Yes Bank Ltd for Rs 600 crore each at a premium of eight rupees each. After this, Axis Bank shares gained 4.67 per cent to close at Rs 568.20 on the BSE.

The process of restructuring Yes bank, which is facing a financial crisis, has now started. The Finance Minister said that the authorized capital of Yes Bank would increase from Rs 1,100 crore to Rs 6,200 crore. Moreover, State Bank of India has appointed YES Bank Administrator Prashant Kumar as the new CEO of the bank. Prashant Kumar will be the new Managing Director and Chief Executive Officer of Yes Bank for the next three years.

SBI will purchase a 49 per cent stake in Yes Bank. Other investors will also be invited. He said that every investor would be prohibited from buying and selling shares for three years. In the case of SBI, it will not be able to reduce its stake to less than 26 per cent for three years. moreover, SBI said in its plan submitted to the Reserve Bank that to maintain liquidity in the bank, the public sector banks will deposit Rs 30,000 crore.

ALSO READ: ICICI Bank To Get 5% Stake In YES Bank For Rs 1,000 Crore