Yes Bank's Reconstruction Scheme Notified; Moratorium To Be Lifted On March 18

To rescue the beleaguered private-sector lender, the government has notified Yes Bank's reconstruction plan as per which few of the investors led by SBI will come at the rescue of the former.

Yes Bank's Reconstruction Scheme Notified; Moratorium To Be Lifted

So, as per the press conference yesterday by the Finance minister, the moratorium earlier imposed on the bank will be lifted on March 18, 2020 at 6 pm. Also, as per the scheme to also take into account fresh raising of funds, there has been approved an increase in authorized capital to about six times to Rs. 6200 crore.

What Changes Now After Moratarium Shall Be Lifted?

Withdrawal limit that currently stands at Rs. 50000 per person irrespective of the number of accounts held with the bank will be withdrawn.

All of the bank branches will be functioning as per the earlier case.

Employees have also been guaranteed continuation in their employment service for at least a year.

The whole problem at the crisis-ridden bank erupted after it lent a sizeable corpus to debt ridden companies rather carelessly.

Lock in period for shareholders of Yes Bank

As per the new scheme approved for the bank's reconstruction, there has been prescribed a lock-in period for investors in Yes Bank who hold 100 or more shares in the bank to the extent of 75% of their holdings as well as for those who are allotted shares as part of the reconstruction scheme.

This simply means that before a lock-in of 3 years that is imposed on Yes Bank shareholders comes to an end, they can just sold 25% of the total holding in the bank in the above case.

Also, the bank is slated to announce its third-quarter result few hours later today.

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