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Last Updated : Mar 13, 2020 08:50 PM IST | Source: Moneycontrol.com

Yes Bank crisis | FM Sitharaman says moratorium will be lifted within 3 days of notification of scheme

A new board for Yes Bank will also be constituted within 7 days from the notification of the reconstruction scheme, she said.

 
 
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The Cabinet on March 13 approved the restructuring scheme for Yes Bank.

"The notification shall come out and the moratorium shall cease on the third working day from the date of the notification, at 18:00 hours," the Finance Minister said

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State Bank of India (SBI) will invest up to 49 percent equity in Yes Bank with a lock-in period of three years and other investors are also being invited, she said.

Also Read | ICICI Bank to invest Rs 1,000 cr in Yes Bank via equity

Sitharaman said that the Reserve Bank of India is also engaging to bring other investors on board.

"They would need to maintain at least 75 percent of their investments for a minimum of three years," Sitharaman said.

A new board will be constituted within seven days and at least two directors from SBI will also be a part of it.

The authorised capital itself of Yes Bank is being raised from Rs 1,100 crore to Rs 6,200 crore in order to accommodate immediate and subsequent capital raising requirement, Sitharaman said.

Also Read | Cabinet approves reconstruction scheme for Yes Bank: FM Sitharaman

She said that all the existing employees of Yes Bank employees would be retained as part of the deal.

The Cabinet also approved a scheme for reimbursement of taxes and duties to exporters to give a boost to outbound shipments.

The reimbursement of taxes such as duty on power charges, VAT on fuel in transportation, farm sector, captive power generation, mandi tax, stamp duty and central excise duty on fuel used in transportation is expected to make Indian products competitive in global markets.

The sectors and products under the remission of duties and taxes on export products (RoDTEP) will be notified in a phased manner and the MEIS benefit for those sectors and items will be withdrawn.

 

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First Published on Mar 13, 2020 04:38 pm
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