The Indian government affirmed the reconstruction plan proposed by the Reserve Bank of India (RBI) for private sector lender YES Bank that will be driven by (SBI) State Bank of India, the Economic Times reported.
The founder and former CEO of YES Bank, Rana Kapoor, is charged over corruption and money laundering while his better half and three daughters are likewise being questioned by investigating officers over their role in draining the public money, Outlook India published.
As per the Economic Times, different members in the scheme incorporate (HDFC) Housing improvement Financial Corp., Axis Bank, ICICI Bank, Kotak Mahindra Bank, Rakesh Jhunjhunwala, RK Damini, and the Azim Premji Trust, which will finance 12,000 crores.
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ICICI Bank and HDFC Bank stated that they would contribute Rs. One thousand crores each, while Axis Bank will provide Rs. Six hundred crores. SBI should hold a base 26% stake in YES Bank for three years, according to the RBI scheme. Concerning different investors, they should save three fourth of their holdings for three years, Nirmala Sitharaman told journalists in a press briefing.
“A considerable amount of commitment is proceeding by the RBI to get more investors.” “The decision to give a reconstruction plan holds at its center the security of depositors’ interest, giving solidness to YES Bank and keeping a stable budgetary condition and banking framework,” she included.
RBI supplanted the YES Bank board, and forced a 30-day interim ban and ordered a 50,000 withdrawal limit on March 5.
Finance Minister Sitharaman stated that RBI would soon lift the moratorium after three working days’ notice as per the scheme. The new board, which will incorporate at least two officials from SBI, will be comprised within seven working days.
Article Credit: Economic Times/Outlook India