MUMBAI: Reserve Bank of India has finalised a revival plan for Yes Bank where not just capital but also funding lines will be finalised to ensure that there is no liquidity issue on raising the moratorium. In terms of the plan finalised by the central bank, the RBI will soon announce commitments from SBI and other banks. Within 24 hours of the announcement (day two) the banks will infuse Rs 20,000 crore into the equity base. On the third day public sector banks will invest around Rs 30,000 crore into certificates of deposits of the bank and the moratorium will be lifted on the fourth day. The plan is expected to be announced anytime after confirmation from the investing banks. Besides SBI, HDFC Bank, Kotak Bank, and ICICI Bank have also been sounded out to invest in the equity of Yes Bank. This will improve the creditworthiness of the bank and make it easier for other banks to lend. Some of the large public sector banks will be investing in certificates of deposits which will become part of their investment portfolio. By fixing an equity base of Rs 20,000 crore, the banks which will invest in the fresh equity will get a 75% stake in Yes Bank and the stake of existing shareholders will shrink to a fourth of the expanded equity base. Shares of Yes Bank were trading at Rs 28 in the BSE on Wednesday, 28% over its previous close. At current prices, the bank is valued at Rs 5,600 crore which is twice the valuation announced by the RBI under its draft plan.
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