“Yes Bank is an entity and Rana Kapoor is an individual. If the individual has done something wrong, they will face the consequences. The institution doesn’t have to suffer for that.”
My nephew has a Yes Bank account and he was the first person to call me. I told him to not worry at all. His funds are safe. I want to tell this to all Yes bank depositors.
The State Bank of India will today flesh out details of the draft rescue plan for Yes Bank Ltd. proposed by the Reserve Bank of India.
The reconstruction plan, which RBI put out last evening, proposes that SBI acquire a 49 percent stake in beleaguered Yes Bank at a minimum of Rs 2,450 crore.
The RBI, which advised the government to place Yes Bank under one-month moratorium, has placed the draft restructuring scheme in public domain for comments.
According to the scheme:
Yes Bank’s authorised capital shall stand altered to Rs 5,000 crore from the current Rs 800 crore.
The number of equity shares will be increased to 2,400 crore from the current 255 crore (face value Rs 2/- each) aggregating to Rs 4,800 crore.
SBI shall agree to invest in the equity of the reconstructed bank such that post infusion it holds 49 percent.
The capital infusion will be at not less than Rs 10 per share (Face value Rs 2, Premium Rs 8)
SBI shall not reduce its holding below 26 percent for three years from date of capital infusion.
That came after the government of India put Yes Bank under a one-month moratorium, capped withdrawals while RBI superseded its board as it saw a steady deteriorate in the bank’s financial position.
Here’s more related coverage around the Yes Bank crisis:
