Axis Bank on Friday said it will invest up to Rs 600 crore in Yes Bank for up to 60 crore shares as part of the reconstruction plan for the cash-strapped peer lender.
"The Board of Directors of Axis Bank Ltd at its meeting held today has accorded approval to invest a sum of up to Rs 600 crore for acquiring up to 60 crore equity shares of Rs 2 each of Yes Bank Limited, for cash, at a premium of Rs 8 per equity share, under the proposed Scheme of Reconstruction of Yes Bank Limited under the Banking Regulation Act, 1949," Axis Bank said in a regulatory filing.
The government on Friday approved a bail out plan for Yes Bank proposed by the Reserve Bank under which SBI would infuse Rs 7,250 crore in the lender for 49 per cent equity.
ICICI Bank will infuse Rs 1,000 crore in the troubled lender in lieu of picking-up 100 crore shares.
Axis Bank shares closed at Rs 568.20 on BSE, up 4.67 per cent from the previous close.