WITH notification issued, YES BANK ‘S moratorium will end on March 18: there will be NO restriction on withdrawal by depositors
GOI on Saturday, March 14 notified the Mumbai headquartered YES Bank’s reconstruction scheme worked out by Reserve Bank of India and okayed by the Union Cabinet chaired by Prime Minister Narendra Modi yesterday.AS the scheme, the moratorium on the private lender will be lifted on March 18.The government has also constituted a four-member board wherein Prashant Kumar, the current administrator of the bank, has been appointed as the managing director and the chief executive officer (MD&CEO) of the bank. Sunil Mehta, the former non-executive chairman of Punjab National Bank, has been appointed the non-executive chairman. The other members of the board include Mahesh Krishnamurthy and Atul Bheda as non-executive directors. State Bank of India will nominate two members to the new board as directors and the Reserve Bank of India (RBI) may choose to appoint one or more persons as additional director(s) to the new board. Meanwhile, Kolkata-based private sector lender Bandhan Bank has said it will invest Rs 300 crore in YES Bank under the reconstruction scheme and acquire 30 crore equity shares at Rs 10 each. Bandhan Bank joins HDFC, ICICI, AXIS AND KOTAK MOHINFRA Banks who will help YES Bank’s revival after State Bank of India’s commitment to invest Rs 7,250 crore in its revival plan. The investment by SBI includes an equity investment of Rs 3,100 crore from four private lenders. The government notification also states that there shall be a lock-in period of three years and to the extent of 75 per cent of equity shares held by existing shareholders holding over 100 shares and private investors who have been allotted shares under the reconstruction scheme.