Corporates

The takeover of Yes Bank by India's central bank last week comes against the backdrop of a string of scandals in the country's financial sector in the last couple of years

Mr Sachdeva who is also the Vice-President of Delhi Petrol Pump Dealers Association told NDTV, "In 2012, my outlet was torched during communal riots in Khoda colony and it took me around 5 years to get it back together because I took several loans. But it feels like the same situation now again. Things have become difficult and I am in a total fix as to what I should do. All my money was in Yes Bank."

Under the scheme of reconstruction of Yes Bank, SBI will be issued 245 crore shares at a price of Rs 10 per share for Rs 2,450 crore. This will be 49 per cent of the share capital of the reconstructed bank.

The RBI said the strategic investor bank will have to acquire a 49 per cent stake and will not be allowed to reduce the holding to below 26 per cent before three years from the date of capital infusion.

State Bank of India (SBI) chairman Rajnish Kumar said on Saturday that the lender is conducting due diligence on the governments bailout plan for Yes Bank, and will get back to the Reserve Bank of India (RBI) with comments by Monday. "There are many potential investors who have approached us after looking at the draft scheme," he said during a media interaction. His comments come a day after the government revealed a rescue plan for Yes Bank under which SBI - the country's largest lender by assets - will take a 49 per cent stake in the troubled private sector lender, and said the depth of the problems at Yes Bank are being assessed. The central bank has suspended Yes Bank's board and imposed a withdrawal limit of Rs 50,000 on its account holders till April 3.

"What's there to panic, no need to panic, all depositors are safe. The RBI governor has said also, just be patient, everything will be fine," Mr Kumar told reporters.

The RBI also suspended the private sector lender's board for a period of 30 days "owing to serious deterioration in financial position of the Bank".

SBI was authorised to pick other members of the consortium in a plan approved by centre, Bloomberg reported, citing people with knowledge of matter.

The government on Thursday, issued an order of moratorium staying the "commencement or continuance of all actions and proceedings" against the beleaguered private lender Yes Bank. In an official notification issued by the finance ministry on Thursday evening, the government also imposed a withdrawal limit of Rs 50,000 for the bank's depositors.

Apart from providing an additional fund-raising avenue for the corporates looking to expand and boost their business activities, overseas listing of shares would also help in bringing more capital into the country.

Blackstone has invested $6 billion in commercial real estate in India over the last 18 months, and is the largest owner of office space in the country.

Counsel of both the firms had told the tribunal that their clients cannot be prosecuted as they are no longer statutory auditors of IL&FS.

The move was in line with the government's intent of making it easier to do business in the country.

As per the existing norms, 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines. In the case of scheduled airlines, 49 per cent FDI is permitted through automatic approval route and any such investment beyond that level requires government nod.

Bharti Airtel paid Rs 3,042 crore, whereas Reliance Jio and Bharti Airtel paid Rs 1,053 crore and Rs 1,950 crore respectively to the telecom department, according to ANI.