New Delhi: In a big relief to harried Yes Bank customers, the private lender has said that it will resume full banking operations from 6 pm on March 18, Wednesday. Also Read - Yes Bank Gets New Board, Decides to Raise Additional Rs 5,000 Crore
Taking to micro-blogging site Twitter, the bank asserted that customers can visit any of its branches from Mar 19, 2020, post commencement of banking hours. Also Read - Yes Bank Founder Rana Kapoor Sent to Judicial Custody Till April 2
“We will resume full banking services from wed, mar 18, 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hours to experience our suite of services. You will also be able to access all our digital services & platforms,” the bank tweeted.
Accordingly, the Reserve Bank imposed moratorium will come to an end at the same time.
The private sector bank has been put under a moratorium by the Reserve Bank of India since March 5 which has restricted deposit withdrawals.
Earlier on Saturday, the government had also notified the scheme of reconstruction for cash-strapped Yes Bank Ltd, according to which the private lender’s authorised share capital will be revised upwards from Rs 1,100 crore to Rs 6,200 crore
The number of total equity shares will stand altered to 3,000 crore of Rs 2 each aggregating to Rs 6,000 crore. Authorised preference share capital shall continue to be Rs 200 crore.
The investor bank, which in Yes Bank”s case is the State Bank of India, will pick up to 49 per cent of the equity, while private investors will be allowed to buy the rest. SBI will have to hold at least 26 per cent stake in the private bank for a minimum period of three years.
Similarly, the other investors will also be mandated to have a similar lock-in period for 75 per cent of their investment in the bank. As per the notification, this lock-in will also be for all existing shareholders who are holding 100 or more shares in the private sector bank.
Investors in the bank, other than SBI, will also have a voting right to the extent of their shareholding in the bank or 9 per cent of the total voting rights of all shareholders in the reconstructed bank or as decided by RBI, whichever is lower. Higher voting rights up to 15 per cent may be allowed to certain investors having higher shareholding and declared “fit and proper” by the RBI.
The reconstructed bank will also allot its equity in within two working days following the commencement of the scheme.
Government has also decided to exempt all investors in the Yes Bank from payment of capital gains tax for any deemed profit or gains on account of subscription of shares.
The office of the administrator of YES Bank shall also stand vacated after seven days from the cessation of moratorium and the new Board will take over the bank.
Prashant Kumar, former SBI CFO, and the current administrator of Yes Bank may take over as managing director and CEO of the bank.
Early this week, SBI said that its board had approved an investment of Rs 7,250 crore in Yes Bank by purchasing 725 crore equity shares.