Mumbai: The Board of Axis Bank today approved an investment of Rs. 600 crore in Yes Bank Ltd. This investment is part of a larger consortium comprising other Indian banks.
Axis Bank will acquire 60 crore equity shares of Yes Bank (Face value Rs 2 per share) at a premium of Rs 8 per share, for a total cash investment of Rs 600 crore. This investment will give Axis Bank a less than 5% stake in Yes Bank.
Indian private sector banks, along with State Bank of India, are bringing in patient and long-term capital at a time when the markets globally have been volatile. Majority of the bank’s investment in Yes Bank will be held for a minimum period of three years.
Commenting on the investment, Amitabh Chaudhry, MD & CEO, Axis Bank said, “The overall banking and financial system in India continues to remain resilient, even as the global economy is facing some challenges. Axis Bank strongly believes in the long-term prospects of the banking industry in India and we are happy to have an opportunity to contribute to the stability of the system.”
Comments are closed.