In a major development, Axis Bank, ICICI Bank, HDFC, and Kotak Mahindra Bank have decided to invest Rs 3,100 crore in Yes Bank.
The Boards of Directors of Axis Bank and HDFC on Friday approved to invest up to Rs 600 crore and Rs 1,000 crore respectively in Yes Bank.
According to an official statement, Axis Bank will be acquiring up to 60 crore equity shares of Rs 2 each of Yes Bank for a consideration of Rs 10 per share for an aggregate consideration of Rs 600 crore.
The Board of Directors of HDFC has also given the approval to invest in 100 crore equity shares of Rs 2 each of Yes Bank for a consideration of Rs 10 per share for an aggregate consideration of Rs 1,000 crore.
The investment by Axis Bank would be less than 5 per cent of the new issued and paid-up capital of Yes Bank, whereas, the investment by HDFC would be in excess of 5 per cent shareholding in Yes Bank.
Kotak Mahindra Bank has issued an equity commitment letter to invest Rs 500 crore in Yes Bank for a subscription of 50 crore equity shares at a price of Rs 10 per equity share.
The Board of Directors of ICICI Bank has also approved an investment of Rs 1,000 crore in Yes Bank via equity route. It will acquire 100 crore equity shares of Yes Bank at Rs 10 per share including a premium of Rs 8 per share.
"This investment is likely to result in ICICI Bank holding in excess of 5 per cent shareholding in Yes Bank, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder," said the ICICI Bank in a statement.
As on September 30, 2019, Yes Bank had total assets of Rs 3,46,575 crore which includes an advance book of Rs 2,24,505 crore. The deposit base of Yes Bank was Rs 2,09,497 crore.
Yes Bank generated a loss of Rs 486 crore on a total income of Rs 17,421 crore for H1 FY20. The results for Q3FY20 have not yet been released.
Earlier, the Reserve Bank of India (RBI) had placed in the public domain a draft scheme of reconstruction for Yes Bank on March 6.
The central bank has 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.