The Reserve Bank of India (RBI) on Friday announced a draft reconstruction scheme for the beleaguered Yes Bank, aimed at protecting depositors’ funds while bringing in the State Bank of India as an investor. For employees of the bank, service conditions, including remuneration, will remain the same, at least for one year. This does not, however, include key managerial personnel, on whom the board can take a call.
According to the draft plan, the authorised capital for the reconstructed bank will be ₹5,000 crore, with 2,400 crore equity shares of ₹2 each, aggregating to ₹4,800 crore.
The SBI, which had earlier said its board was exploring an investment in Yes Bank, will pick up a 49% stake, according to the scheme. The deal would be at a price not less than ₹10 per share with a face value of ₹2. The SBI cannot reduce its holding below 26% before completion of three years from the date of infusion of the capital, the RBI said. To pick up a 49% stake, the SBI will have to invest ₹2,450 crore, sources said.
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