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Yes Bank Latest news: Yes Bank reactivation plan completed, including capital and debt | India Business News


MUMBAI: The Reserve Bank of India has finalized a revival plan for Yes Bank where not only the capital but also the financing lines will be finalized to ensure there are no liquidity problems by lifting the moratorium.

In terms of the plan finalized by the central bank, the RBI will soon announce commitments from the SBI and other banks. Within 24 hours of the announcement (day two), the banks will infuse Rs 20 billion into the capital base. On the third day, public sector banks will invest around Rs 30 billion in bank certificates of deposit, and the moratorium will be lifted on the fourth day.

The plan is expected to be announced at any time after confirmation from the investing banks. In addition to SBI, HDFC Bank, Kotak Bank and ICICI Bank have also been issued to invest in Yes Bank capital. This will improve the bank’s credit quality and make it easier for other banks to lend. Some of the large public sector banks will invest in certificates of deposit that will be part of their investment portfolio.

By setting a capital base of Rs 20,000 crore, banks that will invest in fresh capital will gain a 75% stake in Yes Bank and the existing shareholder share will be reduced to a quarter of the expanded capital base.

Yes Bank shares were trading at Rs 28 on the BSE on Wednesday, up 28% from their previous close. At current prices, the bank is valued at Rs 5.6 billion rupees, which is double the valuation announced by the RBI under its draft plan.

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