The Union Cabinet on Friday cleared a draft resolution scheme for the troubled Yes Bank.
Last week, the Reserve Bank of India (RBI) had announced a draft scheme of reconstruction for the country's fourth-largest lender.
According to the scheme, investor in the bank will pick up 49 per cent stake and maintain holding above 26 per cent for three years from the date of capital infusion.
The scheme was announced a day after the central bank 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.
On Thursday, State Bank of India (SBI) on Thursday said it will infuse Rs 7,250 crore into Yes Bank and pick 725 crore shares at Rs 10 each, and its shareholding will remain within 49 per cent of the paid-up capital.