State Bank of India (SBI) on Thursday approved an investment of ₹72.50 billion in Yes Bank Ltd, as part of a rescue plan for the troubled lender.
The executive committee of the board of India's largest lender approved the purchase of 7.25 billion equity shares of Yes Bank at Rs 10 a share, subject to regulatory approval. SBI's stake in Yes Bank will remain within 49% of the paid-up capital of the bank, the SBI said in a regulatory filing.
Under the Reserve Bank of India (RBI)-supervised 'Yes Bank Reconstruction Scheme, 2020', SBI is required to maintain at least 26% stake in Yes Bank for a period of three years. SBI's proposed plan was to invest a minimum of Rs 24.50 billion to begin with and a maximum of Rs 100 billion for 49% stake in the bank.
Shares of SBI gained Rs 28.05, or 13.18%, to trade at Rs 240.80. The total volume of shares traded was 67,28,888 at the BSE (Friday).
Shares of Yes Bank gained Rs 0.55, or 2.20%, to trade at Rs 25.60. The total volume of shares traded was 2,37,41,859 at the BSE (Friday).