ICICI Bank, HDFC, Kotak and Axis Bank join SBI to invest in YES Bank

March 5, the RBI imposed a moratorium on YES Bank, restricting withdrawals to Rs 50,000 per depositor. (Shutterstock)

Hours after the Cabinet approved reconstruction scheme for YES Bank, private lenders ICICI Bank, HDFC, Kotak Mahindra Bank and Axis Bank came to the cash-strapped bank's rescue. While the SBI had earlier announced its decision to purchase 49 per cent shares, both ICICI Bank and HDFC are set to invest Rs 1000 crore each with Axis Bank pouring Rs 600 crore to pick up 60 crore shares of the troubled lender and Kotak Mahindra infusing an equity capital of Rs 500 crore under the RBI's bailout plan.

The developments took place soon after Finance Minister Nirmala Sitharaman said that other investors were also being invited. 

The ICICI Bank in a regulatory filing said that the board has approved an equity investment of up to Rs 1000 crore in equity shares of YES Bank Limited, comprising up to 100 crore equity shares at a price of Rs 10 per share. "This investment is likely to result in ICICI Bank Ltd holding in excess of 5 per cent shareholding in YES Bank," the filing said