YES Bank Ltd said on Friday that it has not yet withdrawn from the 2020 restructuring scheme as the exit is subject to certain conditions.
A private sector lender is deemed to have dropped out of the restructuring program only after the three-year lock-in period, the bank’s submission of a compliance certificate to the Reserve Bank of India that all conditions of the schemes have been met. , and subsequent central bank approval.
“Accordingly, the announcement made by the bank on July 15, 2022 regarding the withdrawal of the bank from the reconstruction scheme remains unchanged,” the exchange statement said.
Scheme of reconstruction
After a near collapse, a consortium of investors led by State Bank of India in March 2020 poured in ₹10,000 crore to rescue YES Bank. Under the scheme, the bank’s existing shareholders, except those holding less than 100 shares, were locked out of up to 75 percent of their shares for three years.
“The bank received confirmations from the depositories, i.e. Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL) that the blocked shares will be released on March 13, 2023 after the lock-up period viz. March 12, 2023, through the automated depository system without any further action required by the Bank,” YES Bank said on Friday.
Reporting a net profit for FY22 after two years of consecutive losses, YES Bank in July said it had exited the restructuring scheme and started the process of forming an alternative board of directors. Later in the month, he told stock exchanges that the new board of directors had recommended the reappointment of Prashant Kumar as MD and CEO for three years and had also suggested some amendments to the bank’s Articles of Association.
At the bank’s Q1FY23 earnings conference call, Kumar said that with the formation of the new board effective July 15, the RBI has withdrawn two of its nominees appointed as additional directors on the board. The new board includes 6 independent directors, 2 independent directors, in addition to the director and CEO.
September 23, 2022