The ICICI Bank Board on Friday has approved investment up to Rs1,000cr in troubled lender Yes Bank Ltd as part of an initial phase of a rescue deal. The ICICI Bank will acquire 100 crore equity shares in YES Bank at Rs 10 per share under the Banking Regulation Act, 1949, subject to regulatory and government approval.
This investment is likely to result in ICICI Bank Limited holding over 5% shareholding in Yes Bank Limited, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder, ICICI Bank said in the filing.
Finance Minister Nirmala Sitharaman said the moratorium placed on the Yes bank would be removed in three working days of the notification of the reconstruction scheme and a new board will be constituted in seven days, with two of its directors from SBI.
Giving details about the scheme, Sitharaman said the Cabinet approved the Reserve Bank of India’s draft reconstruction scheme for the YES Bank under which SBI will acquire a 49 per cent equity in the lender and other investors are also being invited.
ICICI investment is another big investment in the crisis-ridden private sector bank after State Bank of India announced an investment of Rs 7,250 crore in Yes Bank through the acquisition of 725 crore shares at Rs 10 each.
There will be a three-year lock-in period for all the investors, she said. However, the lock-in period for SBI would be only for the 26 per cent of the shareholding.
