ICICI approves Rs. 1,000 crore investment in Yes Bank
In a major boost to Yes Bank revival plan, the ICICI Bank on Friday approved Rs. 1,000 crore investment plan. A decision to this was taken after a high-level meeting on Friday. "This investment is likely to result in ICICI Bank Ltd holding in excess of 5 per cent shareholding in Yes Bank," the lender said in a regulatory filing."
Earlier, The Union Cabinet on Friday approved re-construction scheme for Yes Bank under which SBI will acquire 49 per cent stake in the crisis-ridden private sector bank.
Meanwhile, shares of Yes Bank on Friday rose by 2 per cent after State Bank of India (SBI) said it will infuse Rs 7,250 crore into the crippled private sector lender.
The stock surged 9.98 per cent to Rs 27.55 on BSE in day trade before closing at Rs 25.55, showing gains of 2 per cent.
State Bank of India on Thursday announced a Rs 7,250-crore fund infusion into the crippled Yes Bank under which it will pick up to 49 per cent equity in the fourth largest private sector lender.
The SBI investment of Rs 7,250 crore is much higher than Rs 2,450 crore it had planned initially for 49 per cent stake in the private sector lender that began operations in 2004.
Meanwhile, the Union Cabinet on Friday approved a reconstruction scheme for Yes Bank under which SBI will acquire 49 per cent stake in the private bank.
There will be a three year lock-in period for all the investors, finance minister Nirmala Sitharaman said. However, the lock-in period for SBI would be only for the 26 per cent of the shareholding.
The authorised capital of the lender has been increased to Rs 6,200 crore from Rs 1,100 crore, the finance minister said.
Yes Bank has been struggling to raise capital amidst its dwindling financial health. It sought to raise USD 2 billion initially during this fiscal, which was then pruned to USD 1.2 billion as it could not rope in any investor.
(With PTI inputs)
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