New Delhi, Mar 13 :
The board of Axis Bank has approved an investment of Rs 600 crore in Yes Bank via equity route.
Axis Bank will acquire 60 crore equity shares of Yes Bank at Rs 10 per share including a premium of Rs 8 per share. After the latest investment, the Bank will hold less than 5 percent of newly issued and paid-up capital of Yes Bank, Axis Bank said in a release to the stock exchange. As of December 31, 2019, LIC, the promoter of Axis Bank held 8.06 percent of the equity share capital of Yes Bank. Earlier, ICICI Bank had also announced an investment of Rs 1,000 crore investment in the crisis-ridden Yes Bank via equity route. The Union Cabinet has approved the restructuring scheme of Yes Bank. Announcing the Cabinet approval to the scheme, Finance Minister Nirmala Sitharaman said the decision keeps at its core the aim to safeguard depositors’ interest and ensure a stable financial banking system. She said the authorised capital of Yes Bank is being raised to Rs 6,200 crore from Rs 1,100 crore in order to accommodate immediate and subsequent capital raising requirement. In a relief to depositors, the FM also announced that the moratorium on withdrawals will be lifted within three days from the notification of the scheme.
She, however, did not specify when it will be notified.
