INSUBCONTINENT EXCLUSIVE:
NEW DELHI:
FederalBank on Saturday said it has committed
to investing
Rs300crorein beleaguered
YesBank for subscription of its 30
crore
shares.
"The
Bank has issued an Equity commitment Letter
toinvestRs300croreinYESBank Ltd for subscription of 30
crore equity shares of
YesBank at a price of
Rs 10 per Equity share," a regulatory filing said.
According statement this equity commitment is pursuant
to the
scheme of reconstruction of
YesBank proposed by the Reserve
Bank of lndia and subject
to regulatory approvals and other conditions as set
out
in the Letter.
The Union Cabinet on Friday approved a reconstruction plan proposed by the RBI for bailing out fund-starved
YesBank.
The authorised capital of
YesBank has been increased
toRs 6,200
crore, Union minister Nirmala Sitharaman said on Friday.
Under
the plan, state-run SBI will infuse
Rs 7,250
crorein the crisis-ridden private
bank and take 49 per cent equity.
Private lender ICICI
Bank also announced investing
Rs 1,000
crore for an equity
in excess of 5 per cent
HDFC will infuse
Rs 1,000
crore, while Axis
Bank will
invest up
toRs 600
croreto purchase 60
crore shares
in the
bank.
There will
be a three year lock-
in period for all the investors
However, the lock-
in period for SBI would be only for 26 per cent of shareholding
It would be 75 per cent
in case of other investors.
The government has notified the
YesBank reconstruction scheme as per which the
moratorium on the troubled private sector lender will be lifted on March 18
