ICICI Bank approves investment of Rs 1,000 crores to revive capital-starved Yes Bank, the private sector lender said in a stock exchange filing today. ICICI Bank board approves to acquire 100 crore equity shares in Yes Bank at Rs 10 per share, the lender said.
This investment is likely to result in ICICI Bank Limited holding in excess of 5.0 per cent shareholding in Yes Bank Ltd, with the final shareholding to be determined based on the final Scheme of Reconstruction and share issuance thereunder,” ICICI Bank said.
On 5 March, the private banks including ICICI Bank, HDFC, Axis Bank and Kotak Mahindra Bank will be part of the SBI consortium to invest in the troubled Yes Bank, livemint reported. The report also mentioned that LIC could put in some capital into the private sector lender.  RBI imposed a moratorium on Yes Bank late evening on 5 March, following it up with a draft reconstruction scheme the next day, asking depositors and creditors to share their views by 9 March. The capital inadequacy of Yes Bank and the inability to raise enough funds to boost its Common Equity Tier 1 (CET1) capital. Yes Bank’s CET 1 is at Rs 27,600 crore, according to an estimate by JPMorgan in a 5 March report. As on 30 September, it’s capital adequacy ratio was 16.3 per cent, Tier I ratio 11.5 per cent and CET 1 ratio at 8.7 per cent (against the required 7.375 per cent).
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