Cabinet okays reconstruction scheme for Yes Bank
Update: 2020-03-14 02:03 IST
New Delhi: The Union Cabinet on Friday approved a reconstruction plan for cash-strapped Yes Bank, under which the State Bank of India will pick up 49 per cent of the equity, while private investors will be allowed to buy the rest.
According to Finance Minister Nirmala Sitharaman, the Cabinet decided that the SBI will hold at least 26 per cent stake in the private bank for a minimum period of three years.
Similarly, the other investors will also be mandated to have a similar lock-in period for 75 per cent of their investment in the bank.
The authorised share capital of the Yes Bank will be revised upwards from Rs 1,100 crore to Rs 6,200 crore.