NEW DELHI: FederalBank on Saturday said it has committed to investing Rs300crorein beleaguered YesBank for subscription of its 30 crore shares."The Bank has issued an Equity commitment Letter toinvestRs300croreinYESBank Ltd for subscription of 30 crore equity shares of YesBank at a price of Rs 10 per Equity share," a regulatory filing said.According statement this equity commitment is pursuant to the scheme of reconstruction of YesBank proposed by the Reserve Bank of lndia and subject to regulatory approvals and other conditions as set out in the Letter.The Union Cabinet on Friday approved a reconstruction plan proposed by the RBI for bailing out fund-starved YesBank.The authorised capital of YesBank has been increased toRs 6,200 crore, Union minister Nirmala Sitharaman said on Friday.Under the plan, state-run SBI will infuse Rs 7,250 crorein the crisis-ridden private bank and take 49 per cent equity.Private lender ICICI Bank also announced investing Rs 1,000 crore for an equity in excess of 5 per cent.
HDFC will infuse Rs 1,000 crore, while Axis Bank will invest up toRs 600 croreto purchase 60 crore shares in the bank.There will be a three year lock-in period for all the investors.
However, the lock-in period for SBI would be only for 26 per cent of shareholding.
It would be 75 per cent in case of other investors.The government has notified the YesBank reconstruction scheme as per which the moratorium on the troubled private sector lender will be lifted on March 18.