The Union Cabinet has approved Reserve Bank of India’s draft reconstruction scheme for the troubled Yes Bank. Addressing the media after the cabinet meeting, along with other cabinet ministers Piyush Goyal and Prakash Javadekar, Union Finance Minister Nirmala Sitharaman said that moratorium on Yes Bank will be lifted within three days of notification of the reconstruction scheme, and a new board will be constituted within seven days, with two directors from SBI.
“SBI will have a lock-in period of three years for 26 per cent for shares. Private investors are also being brought in. They will also have a lock-in period of three years, but it will be for 75 per cent of investment they bring,” said Sitharaman.
RBI has stated in its revival plan that State Bank of India (SBI) would hold 49 per cent stake in the troubled bank after its infusion. The bank would not become a part of SBI but would operate as a separate board-run entity. Earlier had SBI promised to infuse Rs 7,250 crore in Yes Bank.
