Yes Bank’s shares closed 5.27 per cent lower on Monday after Reserve Bank of India’s (RBI) mandated lock-in period expired. The lock-in period prevented a consortium of investors, who were involved in the restructuring plan drawn out by RBI, from selling its stakes in the lender.
The State Bank of India (SBI) and nine other private lenders are part of the consortium that was mandated to retain 75 per cent of its stake in Yes Bank. The investors had bought shares as a part of the restructuring plan drawn out in March 2020 by RBI.
Since the restructuring of Yes Bank, its shares have tumbled by more than 50 per cent which includes 20 per cent this year after the lender reported 80 per cent fall in profit in its last quarter results. The restructuring scheme which was drawn in 2020 had mandated a lock-in period that ends on 13 March, 2023.
As part of RBI’s restructuring plan for Yes Bank to regain its financial health and maintain its liquidity, capital and other critical parameters, SBI and nine financial companies had invested Rs 10,000 crore in the lender.
As of December 2022, SBI held 26.14 per cent or 6,050 million shares of Yes Bank; HDFC and HDFC Bank and ICICI Bank held 1,000 million shares each; Axis Bank 600 million; Kotak Mahindra Bank 500 million; Federal Bank and Bandhan Bank 300 million each and IDFC First Bank held 250 million shares before it went belly up on March 5, 2020. These eight banks held originally almost 11 billion shares in the bank.
(With PTI inputs)