ICICI Bank, Axis Bank, HDFC and Kotak Mahindra Bank to invest total Rs 3,100cr in Yes Bank
Four private sector entities-- ICICI Bank, Axis Bank, Kotak Mahindra Bank and HDFC — will infuse Rs 3,100 crore in total via equity into the crisis-hit Yes Bank.
ICICI Bank and HDFC will invest Rs 1,000 crore each while Axis Bank and Kotak Mahindra Bank will invest Rs 600 crore and Rs 500 crore, respectively.
ICICI Bank and HDFC will each acquire 100 crore equity shares of Yes Bank, while Axis Bank and Kotak Mahindra will buy 60 crore and 50 crore shares, respectively. All the shares will be bought at a value of Rs 10 per share including a premium of Rs 8 per share.
After the said investments, the stakes of ICICI Bank and HDFC in Yes Bank are likely to be in excess of 5 percent, while for Axis Bank and Kotak Mahindra Bank, it will be lower than 5 percent.
The banks announced the investments soon after the Cabinet approved the Reserve Bank of India's (RBI) draft restructuring scheme for Yes Bank.
Announcing the Cabinet clearance to the scheme, Finance Minister Nirmala Sitharaman said Yes Bank's authorised capital will be raised to Rs 6,200 crore from Rs 1,100 crore.
As per the scheme, State Bank of India will invest Rs 7,250 crore in Yes Bank with a lock-in period of three years for up to only 26 percent of the 49 percent of its stake.
For the other private investors, the three-year lock-in will be applicable for only 75 percent of their investment in the private lender.