10 Main Points Announced To Revive Yes Bank
Image: Marketing Mind
Business

10 Main Points Announced To Revive Yes Bank

0

For the last three days, Yes Bank has been in the news. On Thursday, it felt like that Yes Bank will also collapse like PMC. But fortunately, the next day, there was some good news for Yes Bank and its customers. SBI is willing to bail out India’s fourth-largest private bank. And yesterday, the Reserve Bank of India (RBI) placed in the public domain a draft scheme for revival of Yes Bank.

Reserve Bank of India on Yes Bank

According to the report, State Bank of India has expressed its willingness to make investment in Yes Bank and participate in its reconstruction scheme. SBI can invest for up to 49 percent stake for nearly Rs 2,450 crore.

The central bank had invited suggestions and comments from members of the public, including the banks’ shareholders, depositors and creditors on the draft scheme. Suggestions will be received by RBI till Monday, March 9, 2020, after which a final call will be taken.

Here is everything you need to know about the proposed plan:

1. RBI says that State Bank of India (SBI) has expressed its willingness to make investment in Yes Bank and participate in its reconstruction scheme.

2. All employees of the reconstructed Yes Bank will continue with the same pay for at least one year.

3. RBI plans to alter the authorised capital for the reconstituted bank to Rs 5,000 crore and number of equity shares will also be altered to 24,000 crores of Rs 2 each aggregating to Rs 48,000 crore.

4. It has been proposed that the investor bank will not reduce its holding in the new bank below 26 percent before completion of three years from the date of infusion of the capital.

5. The investor bank shall agree to invest in the equity of the reconstructed bank to the extent that post-infusion holds 49 percent shareholding in the bank at a price not less than Rs 10 (Face value of Rs 2 and premium of Rs 8).

6. A new board will be constituted.

7. The plan proposes that the Board of Directors of the Reconstructed Bank will have the freedom to discontinue the services of the Key Managerial Personnel (KMPs) at any point of time after following the due procedure.

8. The investor bank shall have two nominee directors on the Board of the Reconstructed Bank.

9. RBI may appoint additional directors. It will be open to the Board of directors of Yes Bank to co-opt more directors to it.

10. It will be open to the reconstructed bank to open new offices and branches or close down existing offices or branches, in accordance with the extant policy of the Reserve Bank and complying with the necessary terms and conditions.

Source: Economictimes.indiatimes.com

Sahilkashyap
Sahil Kashyap is the founder of Today Headline News and Hindi Aajtak the fastest-growing internet news media portal which provides daily news of all around the world.

All You Need To Know If You Have Salary Account, Loan EMI, SIP & Insurance Payments

Previous article

Google location data turned a random biker into a burglary suspect

Next article

You may also like

Comments

More in Business