The Board of Directors of Bandhan Bank on March 13 approved an equity investment of Rs 300 crore in Yes Bank. The lender will purchase 30 crore shares for Rs 10 each, it informed the stock exchanges.
"Bandhan Bank is investing in 30 crore equity share of which the shares are acquired; Rs 2 each of Yes Bank for a consideration of Rs 10 each (including a premium of Rs 8 per equity share) i.e. for an aggregate consideration of Rs 300 crore," it said.
The share purchase would amount to less than 5 percent of the new issued and paid-up equity share capital of Yes Bank. As per the scheme of reconstruction, 75 percent of the bank's total investment would be locked in for three years.
Also Read: Yes Bank: Rescue plan takes effect, withdrawal limit to go in '3 working days'
"The investment will be under the proposed scheme of reconstruction of Yes Bank under the Banking Regulation Act and subject to regulatory and government approval if any," it stated.
The investment in equity shares would be completed by March 31, 2020, through cash consideration.
The government notified the rescue plan for Yes Bank, led by State Bank of India (SBI) and joined by other lenders, as it looked to shield the banking sector from a widespread crisis.
The so-called reconstruction scheme, cleared by the Union Cabinet, took effect on March 13. The Reserve Bank of India's (RBI) moratorium, imposing limits on withdrawals to prevent a run on deposits will be lifted in three working days, according to the notification.
"Moratorium on the bank to be lifted on the third working day at 18.00 hours (6 pm) from date of commencement of the scheme," it stated.
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