Yes Bank revival plan is finalized by the Reserve Bank of India. According to this plan, not only just capital but also funding lines will be finalized. This is to ensure that no liquidity issues should arise on raising the moratorium.
As part of this plan, the RBI will announce the details with SBI and other banks involving in the Yes bank. The banks will infuse Rs.20,000 crore into the Yes bank, within the 48 hours of this announcement. On the third day, the public sector banks are going to invest Rs.30,000 crores into the certificates of deposits of the bank. After this, the moratorium will be lifted on the 4th day.
Along with SBI, HDFC Bank, ICICI Bank, Kotak Bank are also planning to invest in the Yes Bank. Once all these banks agreed to invest, the RBI has finalized the revival plan for the Yes Bank. With this investment, the creditworthiness of the bank is going to increase which in turn will make easier for the other banks to lend.
After investing Rs.20,000 crore in the Yes Bank, the banks are going to receive a 75% share in the equity. This will lead to the reduction of the share of the existing shareholders to 25%.
On Wednesday, the share of Yes Bank is going at Rs.28 in the BSE, which is 28% above its recent close. In the current scenario, Yes Bank is valued at Rs.5,600 crore which is twice the amount announced by RBI as part of its revival plan.