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

Yes Bank is now all set to rise again from misery as it is starting to get potential investors.

ICICI Bank said on 13th March announced that it would invest Rs 1,000 crore in Yes Bank. “This investment will increase ICICI Bank’s stake in Yes Bank to more than five per cent.” ICICI Bank said in a notice to the stock exchanges. The ICICI Bank board has approved the acquisition of 100 crore equity shares in Yes Bank at Rs 10 per share. Moreover, Yes Bank’s Authorized Capital will be increased from 1110 Crore to 6200 Crore.

Earlier State Bank of India announced that it would invest 7250 crores in Yes Bank. The Union Cabinet also approved the plan proposed by RBI for the re-construction of Yes Bank. Under this scheme offered by RBI, State Bank of India will buy 49 per cent stake of Yes Bank. Addressing the media after the Cabinet decision, Finance Minister Nirmala Sitharaman said that the Cabinet has approved the scheme proposed by RBI for the re-construction of Yes Bank. The interests of the depositors and the stability of Yes Bank in this scheme is kept in mind.

Apart from SBI and ICICI, other investors like Axis Bank, Kotak Mahindra Bank and people like Radhakishan Damani, Rakesh Jhunjhunwala and Azim Premji are also willing to invest 500 crores to purchase 3% stake. It is also reported that LIC will purchase 135 crore shares at the rate of Rs 10 per share and will invest Rs 1350 crore.

On 5th March 2020, RBI took over the board of Yes Bank and implemented a moratorium on it for a month. Under this, up to 5th April, Yes Bank customers could withdraw only Rs 50,000 from their saving bank accounts. On 6th March, RBI issued a Reconstruction Scheme for Yes Bank. After the scheme, several investors started to show their interest in investing in Yes bank.

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