IDFC First Bank in a regulatory filing on Sunday announced an equity investment of Rs 250 crore in Yes Bank for subscription of 25 crore equity shares of Yes Bank of face value of Rs 2 per share at a share premium of Rs 8 per share.
The investment is under the proposed equity scheme of reconstruction of Yes Bank under the Banking Regulation Act, 1949, subject to regulatory and government approval(s).
Shares of IDFC First Bank were currently trading 8.05% lower at Rs 27.40 while shares of Yes Bank jumped 21.92% to Rs 31.55 on BSE.
The Union Cabinet on Friday, 13 March 2020, approved the reconstruction scheme for Yes Bank. The bank board will take over after 7 days once the moratorium is lifted through notifications. Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for Yes Bank.
Among other private bank players, ICICI Bank and HDFC Bank have committed to invest Rs 1000 crore each. Axis Bank and Kotak Mahindra Bank will invest Rs 600 crore and Rs 500 crore respectively. Federal Bank and Bandhan Bank have committed to put Rs 300 crore each in cash starved bank.
Yes Bank is an Indian private sector scheduled commercial bank. Earlier this month, RBI superseded the board of Yes Bank and imposed a moratorium. RBI also capped Yes Bank depositor’s withdrawals at Rs 50,000 per account for a month. It also appointed former chief financial officer (CFO) of SBI, Prashant Kumar as the administrator of Yes Bank.
