Union Cabinet approves Yes Bank reconstruction plan

The Union Cabinet approved a reconstruction plan proposed by the RBI for providing financial assistance to the Yes Bank. Union Finance Minister announced that the authorised capital of Yes Bank has been increased to Rs 6,200 crore.

Under the plan, SBI will infuse Rs 7,250 crore in the Yes bank and take 49 per cent equity. ICICI Bank shall invest Rs 1,000 crore and HDFC will infuse Rs 1,000 crore, while Axis Bank will invest up to Rs 600 crore.

Federal Bank and Bandhan Bank will invest Rs.300 crore each. Former non-executive chairman of Punjab National Bank Sunil Mehta is appointed as Yes bank’s non- executive chairman.