Mumbai, March 8 (IANS): State Bank of India (SBI) will acquire a 49 per cent stake in the reconstructed Yes Bank by acquiring 245 crore shares at a price of Rs 10 each for Rs 2,450 crore 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.

RBI has released the draft of Scheme of Reconstruction of Yes Bank and has invited suggestions and comments up to Monday, March 9.

The scheme called 'Yes Bank Reconstruction Scheme, 2020' will come into force on such date (appointed date) as the Central Government may, by notification in the Official Gazette, specify.

The draft scheme provides that SBI will not reduce its holding below 26 per cent before completion of three years from the date of infusion of the capital.

The new Board of Directors will stand constituted from the appointed date. lt will consist of a CEO and MD, Non Executive Chairman and Non Executive Directors.

SBI will have nominee Directors appointed on the board of the reconstructed bank.

RBI may appoint additional directors to the Board. The members of the Board so appointed shall continue in office for a period of one year, or until an alternate Board is constituted by Yes Bank Ltd.

Yes Bank was placed under moratorium by an order notified by the Central Government on March 5. RBI has appointed Prashant Kumar, Ex DMD and CFO of SBl, as Administrator of Yes Bank.

SBI will not reduce its holding below 26 per cent before completion of three years from the date of infusion of the capital.

As per the draft scheme, all contracts, deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature shall be effective to the extent and in the same manner, as was applicable before the Scheme.

All the deposits and liabilities of the reconstructed bank will continue in the same manner.