Good News For Yes Bank Customers, All Services Will Be Resumed From Wednesday Evening:-
The Government has issued a notification regarding the reconstitution of Yes Bank Limited, the fourth largest private sector bank. After the issuance of this notification, Yes Bank customers can withdraw their money from 18 March evening. Yes Bank has given this information on its official Twitter account. The bank has said that from March 19, work will start normally in 1132 branches of the country.
A New Board OF Directors Has Been Constituted For The Bank:-
According to the notification, a new board of directors has been constituted for the bank. Prashant Kumar, former Chief Financial Officer and Deputy Management Director of State Bank of India have been appointed as Chief Executive Officer and Managing Director of the reconstituted Yes Bank. Sunil Mehta, former non-executive chairman of Punjab National Bank, has been appointed as a non-executive chairman of the bank. Mahesh Krishna Murthy and Atul Bhera have been made executive directors. The Reserve Bank of India may appoint one or more persons as Additional Directors. The reconstituted bank will meet all the past liabilities of Yes Bank. All deposits and liabilities held by the reconstituted bank, the rights of the lenders will remain completely unaffected. All employees of the restructured bank will continue to receive a salary allowance for at least one year as before. According to the notification, the ban on withdrawals from Yes Bank will be lifted in two working days and the administrator appointed for the bank will vacate the office in seven days. The restructured bank’s authorized capital will be Rs 6200 crore and its share will be valued at Rs 2. The authorized share capital will remain at Rs 200 crore.
Central cabinet approved the restructuring plan on Friday:-
The reorganization plan was approved in the Union Cabinet meeting chaired by Prime Minister Narendra Modi on Friday. Finance Minister Nirmala Sitharaman had said that State Bank of India would take a 49 percent stake in it and would have two members on its board of directors. And it will not be able to disinvest a 26% stake in its investment for three years. This is the locking period. For other investors, this limit is 75 percent and three years. The Finance Minister had said that on March 5, the Reserve Bank had dissolved the board of directors of Yes Bank and banned it and appointed an administrator for it. The format for the reconstruction plan was released on 6 March and it was finalized after the response received and approved. Besides restricting this bank, the Reserve Bank had set the withdrawal limit for customers to 50 thousand rupees. The ban was imposed for 30 days but now the government has asked for the ban to be lifted 18 March after the notification for the restructuring plan was issued.
SBI has bought a 49% stake for Rs 7250 crores To get Yes Bank out of the crisis. SBI has bought this stake at the rate of Rs 10 per share. Apart from this, the private sector major bank ICICI Bank has also announced an investment of Rs 1000 crore in Yes Bank at the rate of Rs 10 per share. With this investment, ICICI Bank will have a 5% stake in Yes Bank.