Yes Bank crisis: HDFC Bank, ICICI Bank and Kotak Mahindra Bank have been approached for equity infusion in the troubled bank. A host of public sector banks have also been approached for short-term deposits in Yes Bank. The rescue plan of Yes Bank is being finalised by the State Bank of India that will hold 49 per cent shareholding after the infusion.
According to a report in The Economic Times, a proposed recapitalisation of around Rs 20,000 crore with equity contribution from multiple institutions and bulk deposits of around Rs 30,000 crore by multiple state-owned banks could help in relaxing the moratorium imposed by RBI on Yes Bank.
SBI officials have discussed the proposal in the past 24 hours. This move could assuage concerns of deposits, prevent a flight of funds and lead to an improvement in credit rating, SBI believes. SBI chief Rajnish Kumar also said that the moratorium would be lifted much before the deadline of April 3.
The apex bank on March 6 said that SBI would invest in Yes Bank to hold 49 per cent shareholding. "The Authorised Capital shall stand altered to Rs 50,00,00,00,000 (Rupees five thousand crore only) and number of equity shares will stand altered to 24,00,00,00,000 (two thousand four hundred crore only) of Rs 2 (Rupees Two only) each aggregating to Rs 48,00,00,00,000 (Rupees four thousand eight hundred crore only)," stated the RBI in its reconstruction scheme.
Axis Trustee that represents the investors holding additional Tier1 (AT1) bonds approached the RBI with a settlement plan. "The majority bond holders of the AT1 bonds, for which Axis is acting as debenture trustee, have suggested that a minimum of 170 crore shares be allotted to the existing AT1 bondholders in proportion to their current holding of these bonds," said a letter from Axis Trustee Services to RBI, Yes Bank and market regulator SEBI.