Mumbai:
Even as the SBI board has given the largest lender an "in-principle" approval to invest in the capital-starved Yes Bank, the Reserve Bank of India, as part reconstructing scheme for the revival of Yes Bank, has said that the investor bank or SBI will invest in the equity of Yes Bank to the extent that it holds 49 per cent shareholding post the infusion.
The RBI, that had superceded the board of Yes Bank and put a cap of Rs 50,000 for withdrawal by the bank's depositors,said that State Bank of India has expressed interest to invest in the troubled bank and participate in the reconstruction scheme.
"The Authorised Capital shall stand altered to Rs 50,00,00,00,000 (Rupees five thousand crore only) and number of equity shares will stand altered to 24,00,00,00,000 (two thousand four hundred crore only) of Rs 2 (Rupees Two only) each aggregating to Rs 48,00,00,00,000 (Rupees four thousand eight hundred crore only)," stated the RBI.
This implies that the new value of Yes Bank will be Rs 24,000 crore and SBI-led consortium will have to invest at least Rs 11,760 crore to own 49 per cent stake.
The apex bank said that SBI's investment will be done at a price not less than Rs 10 (Rupees ten only). "The Investor bank shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital," it said.
The RBI said that a new board will be constituted and the office of the Administrator appointed by the RBI will stand vacated. SBI will have two nominee directors on the board of Yes Bank and the RBI might appoint Additional Directors. The board members will remain in office for a period of one year or till an alternate board is constituted by Yes Bank.
The RBI said that the employees will continue their services with the same salary and terms as are already applicable for at least a year. "Board of Directors of the Reconstructed Bank will however, have the freedom to discontinue the services of the Key Managerial Personnel (KMPs) at any point of time after following the due procedure," said the RBI.
The RBI stated that all the offices and branches of Yes Bank will continue to function in the same manner and place as they are currently operating. It might look into opening new offices and branches or closing down existing offices and branches, in accordance with the extant policy.
Defending the timing of the moratorium, RBI Governor Shaktikanta Das on March 6 assured a swift resolution to the issues concerning the beleaguered lender.
"The resolution (to Yes Bank) will be done very swiftly, it will be done very fast. 30 days which we have given is the outer limit. You will see swift action from RBI," Das told reporters in Mumbai
Earlier,the central board of SBI discussed the matter at a meeting on Thursday, it informed the exchanges.
The announcement came hours after Yes Bank was placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
"The matter in regard to Yes Bank was discussed at the meeting of the central board of bank on Thursday and an in-principle approval has been given by the board to explore investment opportunity in the bank," the SBI board informed the bourses late in the evening.
According to reports, the government has asked SBI and life insurance behemoth LIC to collectively pick up a 49 per cent stake in Yes Bank.
Speaking in Davos, Switzerland, earlier this year, SBI chairman Rajnish Kumar said Yes Bank, which had over Rs 2 lakh crore in deposits as of September, will not be allowed to go down.
Appreciating its investments in technology, he said the bank has a strong brand.
Earlier, Kumar also suggested that Yes Bank's rival Kotak Mahindra Bank is best placed to takeover the lender.
Reports of the takeover led to a 25 per cent jump in Yes Bank in trading on Thursday, while the SBI scrip closed 1.05 per cent up at Rs 288.30 a piece at the end of trade.