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Yes Bank shares rise 45%

Yes Bank shares rise 45%

Shares of the scam-hit Yes Bank traded at Rs 37.05 on Monday—a 45 per cent jump after the government notified the reconstruction plan on Friday. In a tweet, Yes Bank said it will resume full-fledged banking services across its 1,132 branches from Wednesday, after banking hours at 6 pm, a move that has brought relief to lakhs to customers.

The Reserve Bank of India (RBI), which had imposed a month long moratorium on March 5, will also be withdrawn subsequently.

Under the Yes Bank Reconstruction Scheme 2020, the new board, led by CEO and MD Prashant Kumar will be put in place by this month-end. Former Punjab National Bank non-executive chairman Sunil Mehta will be inducted as non-executive chairman.

Under the revival plan proposed by the RBI, the private lender has allotted 1,000 crore equity shares to seven private banks and the State Bank of India for a total consideration of Rs 10,000 crore.

The State Bank of India, which would hold 49 per cent stake in the cash-strapped lender, has been allotted 605 crore shares for Rs 6,050 crore.

Investment by private banks has so far reached Rs 3,950 crore. Among the private players, ICICI Bank and Housing Development Finance Corporation committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank committed to invest Rs 600 crore and Rs 500 crore respectively.

Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.

Meanwhile, Yes Bank’s co-founder and former CEO Rana Kapoor has been arrested for alleged money laundering and corruption. The Central Bureau of Investigation and Enforcement Directorate, have also begun questioning Kapoor’s wife Bindu and three daughters after they have been charged for siphoning of public funds..