SBI, LIC & top private banks together to infuse ₹11,000 crore into Yes Bank
New Delhi: State bank of India has submitted a proposal to the Cabinet under which the state owned lender along with Life Insurance Corporation and 4 private sector lenders will infuse ₹11,000 crore into the cash strapped Yes bank Ltd.
According to the proposal, SBI will infuse ₹7250 crore in Yes bank, HDFC Ltd and ICICI bank Ltd will infuse ₹1000 crore each, Axis Bank will infuse ₹600 crore and Kotak Mahindra Bank Ltd is expected to infuse ₹500 once the plan is approved by the cabinet in Friday’s meeting. The quantum of investment to be made by Life Insurance Corporation is yet to be approved by the board, according to a source. Under the new proposed shareholding structure, SBI may hold 45.74%, HDFC and ICICI Bank may hold 6.31% each, and Axis Bank and KMB may hold around 3.5% each. The additional tier 1 bondholders may hold 10.73% and existing shareholders may hold 14.79%. Despite the infusion, Yes bank will continue to hold private sector tag, according to two other sources aware of the matter.The boards of HDFC, ICICI Bank and Axis Bank have approved the investment to be made to into the bank. According to stock exchange notifications, both HDFC and ICICI bank said that they will acquire 100 crore equity shares in Yes Bank at ₹10 per share, raising the shareholding to an excess of 5% shareholding in the private sector lender. Axis bank said that it will acquire 60 crore shares at ₹10 per share, raising the shareholding to nearly 5%.