The government has notified the Yes Bank restructuring scheme proposed by the Reserve Bank of India (RBI) on Friday.

With the notification, the moratorium on withdrawals will be lifted after three working days at 6 pm while a new board of directors will be constituted within seven calendar days.

On March 5, the RBI had superseded Yes Bank’s board and capped withdrawals at Rs 50,000.

As per the notification, former CFO and deputy MD of State Bank of India (SBI), Prashant Kumar will serve on the board as CEO and MD of Yes Bank. Chairman of Punjab National Bank, Sunil Mehta will serve as a non-executive chairman, along with Mahesh Krishnamurthy and Atul Bheda as non-executive directors.

SBI will nominate two more directors to the board while the RBI may appoint an additional director. An investor with 15% voting rights can also appoint a board member.

There will be no change in the employment structure and the offices and branch network of the reconstructed bank, unless deemed necessary by the new board. As per the scheme, there will be no change in the liabilities of the bank. Yes Bank owed Rs 8,800 crore to AT1 bondholders. The finance minister did not share any details with regards to the treatment of the AT1 bonds saying that the matter was in the court.

State-run SBI has committed to invest Rs 7,250 crore at Rs 10 per share for up to 49% stake. Four private lenders will buy equity totalling Rs 3,100 crore. While HDFC Ltd and ICICI Bank will each take over 5% stake for investments of Rs 1,000 crore each, Axis bank will put in Rs 600 crore and Kotak Mahindra Bank will invest Rs 500 crore.

The public lender cannot reduce its holding below 26% for the next three years whereas other investors will be subject to a three-year lock in period for 75% of their investment, the notification mentioned.

According to the scheme, the total share capital has been increased to Rs 6,200 crore from Rs 1,100 crore earlier, to “accommodate immediate and also subsequent raising of capital requirements” finance minister Nirmala Sitharaman said.

There will be 3,000 crore equity shares worth Rs 2 each while the remaining Rs 200 crore shall continue in the form of preference stock.

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