The board of ICICI Bank on Friday approved an investment of Rs 1,000 crore in Yes Bank via equity route.
ICICI Bank will acquire 100 crore equity shares of Yes Bank at Rs 10 per share, including a premium of Rs 8 per share.
“This investment is likely to result in ICICI Bank holding in excess of 5 per cent shareholding in Yes Bank, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder,” ICICI Bank said in a statement.
The announcement came as the Union Cabinet approved Yes Bank’s restructuring scheme to safeguard depositors’ interest and ensure a stable financial banking system.
A day earlier, State Bank of India (SBI) had announced an investment of Rs 7,250 crore in Yes Bank through the acquisition of 725 crore shares at Rs 10 each.
SBI’s shareholding in Yes Bank after reconstruction will be within the 49 per cent limit, it said in a statement.
Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for the country’s fourth-largest lender.
The has imposed a month-long moratorium on the bank and restricted withdrawals to Rs 50,000 per depositor till April 3, citing its poor financial health due to bad loans.