SBI's shareholding in Yes Bank will remain within 49% of the paid up capital of Yes Bank.
State Bank of India (SBI) announced that executive committee of central board (ECCB) at its meeting held on 11 March 2020 accorded approval for purchase of 725 crore shares in Yes Bank at Rs 10 per share, subject to all regulatory approvals. SBI's shareholding in Yes Bank will remain within 49% of the paid up capital of Yes Bank. SBI made the announcement after trading hours yesterday, 12 March 2020.The Reserve Bank of India (RBI) on 6 March 2020 unveiled a draft scheme of reconstruction for Yes Bank and invited suggestions from members of public, including the banks' shareholders, depositors and creditors on the scheme.
As per the draft scheme, the Investor bank shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital. The investor bank shall have two nominee directors appointed on the board of the reconstructed bank. RBI may appoint additional directors in exercise of the powers conferred by sub-section (1) of Section 36AB of the Banking Regulation Act, 1949.
SBI's net profit jumped 41.2% to Rs 5,583.36 crore on a 9.2% rise in total income to Rs 76,797.91 crore in Q3 December 2019 over Q3 December 2018.
The Government of India holds 56.92% stake in SBI as on 31 December 2019.
Shares of SBI lost 12.48% to Rs 186.20.
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Shares of Yes Bank were down 9.58% to Rs 22.65.
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