​Cabinet Clears Draft Resolution Scheme for Yes Bank, Provides Relief to Telecom Sector

Finance Minister Nirmala Sitharaman said on Friday that the Union Cabinet had approved the reconstruction scheme for Yes Bank as proposed by Reserve Bank of India. "State Bank of India will invest up to 49 per cent equity in Yes Bank and other investors are also being invited," the Finance Minister said, addressing the media after the meeting of the Union Cabinet. The Finance Minister's comments come at a time the RBI has taken control of Yes Bank and capped withdrawals from its accounts at Rs 50,000 till April 3 and to protect depositors.

As part of the RBI-backed bailout plan for the troubled lender, SBI has agreed to immediately invest Rs 2,450 crore to buy 49 per cent stake in Yes Bank as part of the rescue deal. SBI will be required to maintain a minimum holding of 26 per cent in Yes Bank for three years from the date of capital infusion and retain all of the private sector lender's employees as part of the deal.