Bandhan Bank board approves investment of Rs 300 crore in Yes Bank

Bandhan Bank board approves investment of Rs 300 crore in Yes Bank

The Kolkata-based Bandhan Bank on Saturday said its board of directors has approved the purchase of 30 crore shares in Yes Bank at Rs 2 per share, which adds up to an investment of Rs 300 crore, under the bank’s reconstruction scheme.

“Bandhan Bank is investing in 30 crore equity share of which the shares are acquired; Rs 2 each of Yes Bank for a consideration of Rs 10 each (including a premium of Rs 8 per equity share) i.e. for an aggregate consideration of Rs 300 crore,” bank said.

In a regulatory filing, the private lender said its shareholding in the private lender will be 5 percent of the paid-up capital.

“The investment will be under the proposed scheme of reconstruction of Yes Bank under the Banking Regulation Act and subject to regulatory and government approval if any,” it said.

As per the scheme of reconstruction, 75 percent of the total investment of the bank would be locked in for three years and the investment in equity shares would be completed by March 31, 2020, through cash consideration, the lender said.

ICICI Bank, HDFC, Axis Bank and Kotak Mahindra Bank too on Friday said they will join the SBI-led consortium and invest in Yes Bank.

ICIC Bank and HDFC will invest Rs 1,000 crore each, Axis Bank will invest Rs 600 crore by buying 60 crore shares and Kotak Mahindra Bank Rs 500 crore through buying 50 crore shares.

On Thursday, SBI said it will invest Rs 7,250 crore in Yes Bank, which is much higher than the Rs 2,450 crore it had planned initially for 49 percent stake in the private sector lender that began operations in 2004.