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SBI to hold 48.21 per cent stake in YES Bank, HDFC 7.97 per cent

Our Bureau Mumbai | Updated on March 17, 2020 Published on March 17, 2020

State Bank of India, which has invested Rs 6,050 crore in YES Bank, will hold 48.21 per cent stake in the private sector lender.

“To infuse equity capital in the bank in accordance with RBI's ‘Yes Bank Reconstruction scheme’. It is a collective effort of Government of India, Reserve Bank of India, banks and all other investors to infuse capital with an objective to retain financial system stability,” SBI said in a regulatory filing on Monday.

Meanwhile, Housing Development Finance Corporation, which has invested Rs 1,000 crore in YES Bank, will hold 7.97 per cent stake. In a regulatory filing, HDFC said this comes "after giving effect to the allotment of shares to State Bank of India, the Corporation, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank and IDFC First Bank." The allotment of shares was done by YES Bank on March 14.

Under the reconstruction plan for the beleaguered private sector lender, SBI purchased 605 crore shares and HDFC 100 crore shares. ICICI Bank has also invested Rs 1,000 crore to acquire 100 crore shares

In all, eight banks and financial institutions, led by SBI, that have come together and invested in YES Bank.

Axis Bank has invested ₹600 crore to buy 60 crore shares and Kotak Mahindra Bank ₹500 crore for 50 crore shares.

Bandhan Bank has invested Rs 300 crore to acquire 30 crore shares and IDFC First Bank Rs 250 crore to purchase 25 crore equity shares.

Meanwhile, YES Bank in a regulatory filing said Prashant Kumar, the RBI appointed administrator, will be the Managing Director and CEO of the reconstituted Board of Directors, and Sunil Mehta the part-time Non-Executive Chairman.

Published on March 17, 2020
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