The State Bank of India has finalized to buy shares worth Rs 7250 crore of the cash-strapped Yes Bank. The purchase of the shares will be in accordance with the draft reconstruction scheme put forward by the Reserve Bank of India. SBI will buy the 725 shares of Yes Bank at a price of Rs 10 per share. After the purchase, the shareholding of the State Bank of India (SBI) in Yes Bank will remain under 49% of the paid-up capital.
The Union Government of India imposed temporary prohibition of the activity of the capital-starved Yes Bank and capped withdrawals at ₹50,000 per account after considering an application created by the Reserve Bank of India. The board of Yes Bank has been superseded with immediate effect by the Reserve Bank of India (RBI). Former SBI CFO Prashant Kumar has been selected as administrator of Yes Bank.