After 24 hours of placing Yes Bank under moratorium and superseding its board, the Reserve Bank of India has announced a reconstruction scheme. Here are the key contours of the scheme.
- Yes Bank’s authorised capital to be altered to Rs 5,000 crore
- Number of equity shares reduced to 2,400 crore of face value Rs 2
-Investor bank to hold 49 percent stake in the reconstructed bank. It will acquire this stake for not less than Rs 10
- There is a three-year lock-in period for such investors. They also cannot reduce their holding below 26 percent
- The investor bank (State Bank of India) can appoint two nominee directors
- RBI may appoint additional directors to the reconstructed bank’s board
- No change has been made in the rights and liabilities of the reconstructed bank
- Bank’s Additional Tier 1 capital written down completely and permanently
- Account holder won’t be entitled to receive any compensation from the reconstructed bank
- The terms of service and remuneration of all employees of Yes Bank will continue to remain the same
- The board, however, can discontinue the services of key managerial personnel
- There will be no change in the offices or branch network of the reconstructed bank
- However, the reconstructed bank can open new offices and branches or close down existing offices or branchesTo catch all live updates on this developing story, click here....
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