Biznextindia : ICICI Bank, India’s top private sector bank on Friday announced that it’ll acquire 5% stake in Yes bank for Rs.1000 Crore. The board of the bank has already approved the proposal on Thursday.
“…Board at its Meeting held on March 12, 2020 accorded approval for an equity investment of up to~ 10.00 billion in equity shares of Yes Bank Limited, comprising up to 1.00 billion equity shares at a price of~ 10.0 per share, under the proposed Scheme of Reconstruction of Yes Bank Limited under the Banking Regulation Act, 1949, subject to regulatory and government approval. This investment is likely to result in ICICI Bank Limited holding in excess of 5.0% shareholding in Yes Bank Limited..” said ICICI Bank in a market filing.
Earlier, the union cabinet approved a reconstruction scheme for Yes Bank under which SBI will pick up 49% stake in the crisis ridden private bank.
On March 5, the RBI imposed a moratorium on the crisis ridden Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The central bank also superseded the board and placed it under an administrator, Prashant Kumar, former deputy managing director and CFO of SBI.