Yes Bank’s new board will have CEO, MD; employees will receive the same compensation for one year: OSE
Rumita Patel
NEW DELHI: the largest state bank in the country, the State Bank of India (SBI), which can acquire 49 percent of the participation in the Yes Bank affected by the crisis under the reconstruction scheme project of the Bank of the Reserva de la India (RBI) said on Saturday that all employees of the rebuilt bank will continue in service with the same pay for a period of at least one year.
In a notification, SBI said that shares of Rs 245 million will be issued at a price of Rs 10 each for Rs 2,450 crore at Yes Bank. These actions will result in a 49 percent stake in the rebuilt bank.
SBI will not reduce its participation below 26 percent before completing three years from the date of capital infusion, the statement said.
In addition, he said that the new Yes Bank board will have CEO and CEO, non-executive president and non-executive directors. SBI will also have nominated directors appointed on the board of the rebuilt bank.
According to the statement, all contracts, deeds, bonds, agreements, powers, legal representation grants and other instruments of any nature will be effective to the extent and in the same way, as was applicable before the scheme. All deposits and obligations of the Reconstructed Bank will continue in the
Same way.
Earlier in the day, President Rajnish Kumar announced that the SBI board has already given its approval “in principle” to explore investment opportunities in Yes Bank.
Kumar said SBI received the draft reconstruction scheme and that its legal and investment teams are doing the due diligence of the scheme.
