Mumbai: The country’s largest lender State Bank of India on Thursday said it has received approval to buy Rs 7,250 crore worth of shares in crisis-hit Yes Bank. Also Read - Court Extends Yes Bank Founder Rana Kapoor's ED Custody Till March 16
“The executive committee of the central board (ECCB) at its meeting held on March 11 accorded approval for the purchase of 725 crore shares in Yes Bank at a price of Rs 10 per share subject to all regulatory approvals,” SBI said in a regulatory filing. Also Read - YES Bank Customers Can Now Use NEFT, IMPS to Pay Their Dues
The bank’s shareholding in Yes Bank will remain within 49 per cent of the paid-up capital of the private sector lender. Also Read - Yes Bank Crisis: Some People Spreading Lies For Politics, Says Anurag Thakur
Last week, the Reserve Bank of India had announced a draft scheme of reconstruction for cash-starved Yes Bank.
The scheme said the strategic investor in the bank will have to pick up 49 per cent stake and it cannot reduce holding to below 26 per cent before three years from the date of capital infusion.
The scheme was announced a day after the RBI imposed a moratorium on the bank, restricting withdrawals to Rs 50,000 per depositor till April 3.