India’s Yes Bank to exit reconstruction scheme after share lock-in period ends

India’s Yes Bank to exit reconstruction scheme after share lock-in period ends

The logo of Yes Bank is pictured on the facade of its headquarters in Mumbai, India January 17, 2018. Picture taken January 17, 2018. REUTERS/Danish Siddiqui

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BENGALURU, Sept 23 (Reuters) – India’s Yes Bank Ltd (YESB.NS) said on Friday the Reserve Bank of India would allow it to exit a reconstruction scheme put in place more than two years ago only after the share lock-in period ends.

The bank said in a regulatory filing the lock-in period for shares of existing shareholders would end in March next year.

In an email the bank described the filing as a technical clarification with no bearing on anything such as a capital raise or transfer of stressed assets.

In March 2020, Yes Bank’s financial position had seriously deteriorated, sparking contagion risk in the banking system from the then fifth largest bank in India.

Earlier this week, it approved private equity firm JC Flowers ARC as the buyer for its $6 billion stressed loan portfolio.

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Reporting by Rama Venkat in Bengaluru and Nupur Anand in Mumbai; Editing by Krishna Chandra Eluri and Elaine Hardcastle

Our Standards: The Thomson Reuters Trust Principles.

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