The board of Kotak Mahindra Bank has approved an equity capital infusion of Rs 500 crore in troubled private lender Yes Bank.
Kotak Mahindra Bank will acquire 50 crore equity shares of Yes Bank at Rs 10 per share, the bank informed the exchanges in a release on March 13.
Earlier in the day, boards of ICICI Bank and HDFC also approved infusion of Rs 1,000 crore each, while that of Axis Bank approved an investment of Rs 600 crore, in Yes Bank.
Also Read | HDFC board clears Rs 1,000 cr equity infusion in Yes Bank at Rs 10/share
As per the restructuring scheme cleared by the Union Cabinet earlier today, the State Bank of India (SBI) will invest Rs 7,250 crore into Yes Bank to acquire a stake not exceeding 49 percent. There will be a lock-in period of three years during which the stake of SBI cannot fall below 26 percent.
Also Read | Axis Bank to invest Rs 600 crore in Yes Bank via equity
Other private investors will also have a lock-in period of
The authorised capital of Yes Bank has also been raised to Rs 6,200 crore from Rs 1,100 crore.
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