Yes Bank shares up 45% as rescue plan kicks in

Mumbai, March 16 (SocialNews.XYZ) Shares of crisis-ridden Yes Bank soared on Monday as its reconstruction scheme has come into effect, and the bank has announced that it will resume full-fledged operations on March 18.

At 1.32 p.m., its stock price stood at Rs 37.15, higher by Rs 11.60 or 45.40 per cent from its previous close.

So far, it has touched an intra-day high of Rs 40.40 per share. Under the revival plan proposed by the Reserve Bank of India (RBI), the private lender has allotted 1,000 crore equity shares to seven private banks and the state-run State Bank of India for a total consideration of Rs 10,000 crore.

Investment by private banks has so far reached Rs 3,950 crore. Among the private players, ICICI Bank and Housing Development Finance Corporation committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank committed to invest Rs 600 crore and Rs 500 crore respectively.

Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.

Further, SBI which would hold 49 per cent stake in the cash-strapped lender has been allotted 605 crore shares for Rs 6,050 crore.

The government on Saturday notified the scheme of reconstruction for cash-strapped Yes Bank Ltd, paving the way for the lender to resume full operations.

The private sector bank has been put under a moratorium by the Reserve Bank of India since March 5 which has restricted deposit withdrawals up to Rs 50 thousand per month. Under the terms of the notified scheme, this moratorium will now be lifted at 6 p.m. on March 18.

On Monday, Yes Bank said in a tweet that it will restart full-fledged banking services from Wednesday, 6 p.m. onwards.

Source: IANS