YES bank has gotten the worse this year. Reserve Bank of India is has imposed a withdrawal limit to YES bank but now, the moratorium on withdrawals will get lifted that will happen after the three working days, on Wednesday on 6PM. Recently on March 5th, The RBI superseded the YES bank’s board and capped the withdrawal at INR 50,000.
As per the information, the former CFO and deputy MD of the state bank of India, Prashant kumar said that he will serve on the board as a MD and CEO of YES bank. Also, the chairman of Punjab National bank, Sunil Mehta will serve as a non executive chairmain and Atul Bheda and Mahesh Krishnamurthy will be the non executive directors.
The state bank of India will also nominate two directors to the board and RBI will appoint the additional director to it. Any investor who has 15% voting rights can also appoint a board member.
However, there won’t be any changes in the employment structure or to the office and branch network of reconstructed bank unless it is applied by the new board.
According to the scheme, there again will be no changes made in the liabilities of the bank. They still owe INR 8,800 crore to AT1 bondholders. Apart from this, the finance minister didn’t share other such details till now.
Accordin to the shceme, the total number of share capital has increased to INR 6,200 crore from INR 1,100 crore and on this, the finance minister, Nirmala Sitharaman said- “accommodate immediate and also subsequent raising of capital requirements”.