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Yes Bank says it can exit reconstruction scheme once RBI confirms compliance certificate

Yes Bank says it can exit reconstruction scheme once RBI confirms compliance certificate

Yes Bank says it can exit reconstruction scheme once RBI confirms compliance certificate
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By Jomy Jos Pullokaran  Sept 23, 2022 8:42:11 PM IST (Published)

Shares of Yes Bank Ltd ended at Rs 16.20, down by Rs 0.55, or 3.28 percent on the BSE.

Yes Bank on Friday said it has amended the announcement made on July 15, 2022, regarding its exit from the Reconstruction Scheme 2020 after the private lender received clarification from the Reserve Bank of India (RBI) about the scheme.

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The bank said on September 23 it can exit the Reconstruction Scheme 2020 after the completion of the lock-in period of three years in respect of 75 percent of shares (except those who held less than 100 shares) held by existing shareholders.
Also, the lender has to submit a compliance certificate to RBI that all conditions of the scheme have been fulfilled, and get a confirmation of the same by the central bank.
Further, the bank has received confirmations from depositories, namely Central Depository Services Ltd and National Securities Depository Ltd, that the locked-in shares would get released on March 13, 2023, after the lock-in period of March 12, 2023, through the automated system of depositories.
The central government had notified the Yes Bank Reconstruction Scheme on March 13, 2020, after the private lender faced a governance crisis triggered by mismanagement at the top level.
As per the government's reconstruction scheme for the bank, the incoming shareholding of shareholders with 100 and more shares would be automatically locked in for three years. "In terms of the said clause, 75 percent of the shareholding of the shareholders holding 100 or more shares will be automatically under the lock-in," it said earlier.
"Accordingly, all shareholders holding 100 or more Equity Shares are advised to exercise utmost caution while dealing in the script
The SBI, which will have a stake of 49 percent in the bank through a Rs 7,250-crore equity infusion, will have a lock-in period of three years only for the 26 percent of this holding. The private sector financial entities will have to stay locked in for three years.
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