YES Bank Ltd on Friday said it is not out of the Reconstruction Scheme, 2020 yet as the exit is subject to certain conditions.

The private sector lender will only be deemed to be out of the reconstruction scheme following the end of the lock-in period of three years, submission of compliance certificate by the bank to the Reserve Bank of India that all conditions of the schemes have been fulfilled, and the subsequent approval of the central bank.

“Accordingly, the announcement made by the bank on July 15, 2022 with regard to the bank exiting the Reconstruction Scheme stands amended,” it said in an exchange filing.

Reconstruction scheme

Following its near-collapse, a consortium of investors led by State Bank of India had infused ₹10,000 crore in March 2020, to bail out YES Bank. As per the scheme, existing shareholders of the bank—except for those holding less than 100 shares—were locked-in for three years, for up to 75 per cent of their shareholding.

“The Bank has received confirmations from depositaries, viz. Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL) that the locked-in shares would get released on March 13, 2023 after the lock in period i.e. March 12, 2023, through the automated system of depositories without any further action needed from the Bank,” YES Bank said on Friday.

New board 

Post reporting a net profit for FY22, after two years of consecutive losses, YES Bank in July said it has come out of the Reconstruction scheme and started the process of forming an alternate board. Later during the month, it informed the exchanges that the new board has recommended the re-appointment of Prashant Kumar as the MD and CEO for three years, and proposed some amendments  to the Articles of Association of the bank.

In the bank’s Q1FY23 earnings conference, Kumar said that with the creation of the new board effective in July 15, the RBI has withdrawn its two nominees, appointed as additional directors on the board. The new board comprises 6 independent directors, 2 non-independent directors, in addition to the MD and CEO.