NEW DELHI: The State Bank of India (SBI) on Thursday said it will buy YES Bank’s shares worth Rs 7,250 crore at Rs 10 per share, subject to regulatory approvals.
In a regulatory filing post market hours, the bank said its shareholding in the private lender will stay within the 49 per cent of the paid up capital of the bank.
The development came after the Reserve Bank of India (RBI) last week released a draft scheme for reconstruction of YES Bank. Under the scheme, the central bank said the investor bank would need to invest in the equity of the reconstructed bank to the extent that post infusion it holds 49 per cent shareholding in the bank at a price not less than Rs 10.
RBI had invited suggestions and comments from members of public, including the banks’ shareholders, depositors and creditors on the draft scheme.
“The executive committee of central board at its meeting held on March 11 accorded approval for purchase of 725 crore shares in YES Bank at a price of Rs 10 per share subject to all regulatory approvals,” SBI said.
“SBI’s shareholding in YES Bank will remain within 49 per cent of the paid up capital of YES Bank,” it added.
