YES Bank To Resume Full Banking Services From 18 March; Shares Soar Over 45 Per Cent

YES Bank has announced that it will be resuming full banking operations from 6:00 pm on 18 March. YES Bank customers will be able to access all banking services from 19 March onwards.

"We will resume full banking services from Wednesday, 18 March 2020, 18:00 hrs. Visit any of our 1,132 branches from Mar 19, 2020, post commencement of banking hrs to experience our suite of services. You will also be able to access all our digital services & platforms" the bank tweeted.

The announcement, along with the reconstruction scheme of Yes Bank, seems to have allayed the fears of the investors. The Shares of crisis-ridden Yes Bank soared on Monday (16 March).

At 2.50 pm, its stock price stood at Rs 37.70, higher by Rs 12.25 or 47.55 per cent from its previous close.

So far, it has touched an intra-day high of Rs 40.40 per share. Under the revival plan proposed by the Reserve Bank of India (RBI), the private lender has allotted 1,000 crore equity shares to seven private banks and the state-run State Bank of India for a total consideration of Rs 10,000 crore.

Investment by private banks has so far reached Rs 3,950 crore. Among the private players, ICICI Bank and Housing Development Finance Corporation committed Rs 1,000 crore each. Axis Bank and Kotak Mahindra Bank committed to invest Rs 600 crore and Rs 500 crore respectively.

Both Federal Bank and Bandhan Bank have been allotted shares for Rs 300 crore each as per their commitment and IDFC First Bank has been issued equity shares in the crisis-ridden bank for a consideration of Rs 250 crore.

Further, SBI which would hold 49 per cent stake in the cash-strapped lender has been allotted 605 crore shares for Rs 6,050 crore.

The government on Saturday notified the scheme of reconstruction for cash-strapped Yes Bank Ltd, paving the way for the lender to resume full operations.

The private sector bank has been put under a moratorium by the Reserve Bank of India since 5 March which has restricted deposit withdrawals up to Rs 50 thousand per month. Under the terms of the notified scheme, this moratorium will now be lifted at 6 pm on 18 March.

(With IANS Inputs)