ICICI Bank To Buy 5% Stake In Yes Bank

On Friday, ICICI Bank said that it will acquire 5 percent stake in Yes Bank with Rs 1,000 crore investment.

In a statement to the exchange, the private bank said that its board has approved an equity investment of up to Rs 10 billion in equity shares of Yes Bank comprising up to 1 billion equity shares at a price of Rs 10 per share, under the proposed Scheme of Reconstruction under the Banking Regulation Act, 1949. The deal is subject to regulatory and government approval.

"This investment is likely to result in ICICI Bank Limited holding in excess of 5.0% shareholding in Yes Bank Limited, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder," it statement added.

Meanwhile, Finance Minister Nirmala Sitharaman in a press briefing said that the moratorium imposed on Yes Bank will be lifted within three days from the notification of the reconstruction scheme.

"The notification shall come out and the moratorium shall cease on the third working day at 1800 hours from the date of the notification. Office of the administrator shall stand vacated after seven calendar days from the cessation of the moratorium and a new board shall be constituted," Sitharaman said.

The Finance Minister also said that the Union Cabinet has approved RBI's restructuring scheme for the Yes Bank.