The federal government has announced that control of Yes Bank will be lifted on March 18. Former chief financial officer of SBI, Prashant Kumar has also been announced to continue for three years as CEO and managing director of the bank.
The Reserve Bank will also appoint two chairman and two directors of the bank. There will be two directors for SBI. Other investment banks have also announced that they will appoint a director on their behalf if they have 5 percent of the franchise.
On Friday, the cabinet approved plans to restructure Yes Bank. Accordingly, SBI will invest Rs 7,250 crore in Yes Bank to achieve 49% of the total. It was reported that SBI should not reduce its share to less than 26 percent in the next three years. Likewise, LIC will have to invest in Yes Bank. However, the details of how many shares to buy and how much to invest are yet to be announced.
On March 5, the Reserve Bank took on EES Bank in bankruptcy. Subsequently, Yes Bank was limited to 3 April to lift more than 50,000 of its customers. Similarly, Yes Bank should not have a loan for a month. The board of directors of Yes Bank was dissolved and the RBI appointed Prashant Kumar as its representative.
Besides Prashant Kumar on the board of directors, Sunil Mehta will be the non-executive chairman, while Mahesh Krishnamurti and Atul Bedha will be in charge of the day-to-day operations. It is noteworthy that Sunil Mehta was the leader of the BNP day by day.
At least 20,000 crore is needed to recover the current condition of Izwanji. SBI company will buy 5 percent stake in this company for Tk 20 crore. ICICII Bank has also invested Tk 1,000 crore, HDFC one thousand crore rupees, Axis Bank Tk 600 crore, Kodak Mahindra Bank 1 crore Bandhan Bank 1 crore and Federal Bank Tk 1 crore.