ICICI Bank affirmed an investment of Rs 1,000 crore in Yes bank which was recently hit by a crisis as a component of an initial period of a rescue deal. ICICI Bank will gain 100 crore value Stake in Yes bank at Rs 10 per share.
This venture from the side of ICICI bank Limited holding is probably going to result in it in an overabundance of 5 per cent shareholding in Yes Bank Ltd.
ICICI Bank, HDFC, Axis Bank and Kotak Mahindra Bank will together contribute Rs 3,100 crore as a significant aspect of the RBI’s remaking plan for the emergency hit Yes bank, as per the administrative filings.
In a trade documenting, ICICI bank on March 13 said it would invest Rs 1,000 crore in Yes bank and the choice was taken at bank’s executive meeting held on March 12.
The Board agreed on endorsement for a value venture of up to Rs 10 billion in value portions of Yes bank Limited. This will include up to 1 billion value shares at the cost of Rs 10 for every offer, under the proposed Scheme of Reconstruction of Yes bank Limited under the Banking Regulation Act, 1949, subject to administrative and government endorsement ICICI bank said in an administrative documenting.
This venture will result in ICICI bank Ltd holding more than 5 per cent shareholding in Yes bank, with the last shareholding to be resolved dependent on the previous Scheme of Reconstruction and offer issuance thereunder, it included.
On the expense of procurement of offers in Yes Bank, ICICI Bank said it is for money thought of Rs 10 billion wherein it will secure 1 billion value portion of the assumed worth of Rs 2 including premium costs of Rs 8 for each offer.
ICICI bank likewise explained this is definitely not a related gathering exchange.
PhonePe users were unable to make transactions on March 6, 2020, through the app, in addition to this BharatPe which relies on QR codes at small stores and retail outlets, did not function for the said duration. Later that night PhonePe announced on social media that it was back on track with all kinds of payment ways Available online.
BharatPe is still in the process of transferring the transactions of Yes bank in large chunks to ICICI bank.
Establishment of various features and services like creation of nodal accounts, reconciliation of systems and processing capacity of the bank to undertake transactions from these entities.
The officials of ICICI banks worked intimately with the workers at that of PhonePe and got up and running at the earliest.
ICICI bank let go of formalities like the process of going through with a no-objection certificate while moving current accounts between two banks, instead relied on KYC. In addition to this were the services like remote on-boarding of customers, instant current account opening and other services that made the process of PhonePe users to transfer their accounts easily, if anything they made the process slightly simpler.
The significant role played by NPCI was also pointing out by the bankers in the process of migration of services, as a platform of settlement. It now has to route transfers originating from Yes bank to ICICI bank system.
PhonePe also shifted the nodal accounts to ICICI bank to ensure that the dealers and traders who are users of the app receive the funds on time, it is also ensuring that the people’s trust and confidence in the system are not disrupted.
Even Cashfree, the banking and payment company, disclosed that it had migrated more than 10 lakh Yes bank UPI handles to ICICI bank within the first 100 hours of the announcement of the moratorium on the bank.
All out resources of Yes bank Ltd remained at Rs 3,46,576 crore as of the end of September 2019. The bank posted an overall deficit of Rs 486 crore for the first half-ended September of the current monetary year on a total income of Rs 17,421 crore.
Yes bank announced its Q3 result on March 14, which was postponed amid the bank’s capital raising plans. As stated by the government, the moratorium on Yes bank was lifted at 6 pm on March 18, the third working day after the Yes bank reconstruction scheme comes into force.
