Yes Bank’s reconstruction approved by Union Cabinet: Nirmala Sitharaman
Finance Minister Nirmala Sitharaman, Piyush Goyal and Prakash Javadekar briefed the media on the outcome of the cabinet meeting today. The press conference came at a time when the country is facing economic slowdown, coronavirus scare and Yes Bank crisis.
Here are some of the highlights from the briefing on the Yes Bank issue:-
- To accommodate immediate and subsequent raising of capital requirements of Yes Bank, an authorized capital has been raised from Rs. 1,100 crore to Rs. 6,200 crore.
- At least, 2 members for SBI will be part of the new board.
- The board will take over within 7 days of the issuance of notification.
- A lock-in period of 3 years for 75% of their investment will be given to private investors.
- SBI too to have lock-in period of 3 years for only 26% of its stake in Yes Bank.
- Within three days of notifying the scheme, the moratorium on Yes Bank will be lifted.
- Soon after the notification, key points of Yes Bank reconstruction will be available.
- SBI will have a 49% stake in Yes Bank.
- Yes Bank will be reconstructed to ensure financial stability.
- The reconstruction plan for Yes Bank approved by Union Cabinet.
Piyush Goyal addresses the media regarding exports:-
- The scheme for Remission of Duties and Taxes on Exported Products gets approval from Cabinet.
- The above scheme will allow Indian exports to be cost competitive and it will also create a level playing field for exporters in International market: Piyush Goyal
Prakash Javadekar briefs the media regarding other decisions taken in the Cabinet meeting:-
- An approval to build a 780-km ‘green’ National Highway project at cost of Rs.7,660 crore gets approval from the Cabinet, says Prakash Javadekar.
- National Highways will be upgraded upto 780kms.
- Have hiked MSP for Copra.
- The Union Cabinet today approved 4% hike in dearness allowance (DA) to 21% for central government employees, costing the exchequer an additional ₹14,595 crore. The Cabinet also approved a 4 per cent hike in DA to 21 pc for 48 lakh govt employees, 65 lakh pensioners.
- SBI said on Thursday that it will buy 725 crore shares of Yes Bank at the price of Rs.10 per share, subject to regulatory approvals.