Yes Bank crisis: Federal Bank to invest Rs 300 cr for 300 mn shares

Federal Bank on Saturday said it has committed to investing Rs 300 crore in beleaguered Yes Bank for subscription of its 30 crore shares.

"The Bank has issued an Equity commitment Letter to invest Rs 300 crore in YES Bank Ltd for subscription of 30 crore equity shares of Yes Bank at a price of Rs 10 per Equity share," a regulatory filing said.

According statement this equity commitment is pursuant to the scheme of reconstruction of Yes Bank proposed by the Reserve Bank of lndia and subject to regulatory approvals and other conditions as set out in the Letter.

The Union Cabinet on Friday approved a reconstruction plan proposed by the RBI for bailing out fund-starved Yes Bank.

The authorised capital of Yes Bank has been increased to Rs 6,200 crore, Union minister Nirmala Sitharaman said on Friday.

Under the plan, state-run SBI will infuse Rs 7,250 crore in the crisis-ridden private bank and take 49 per cent equity.

Private lender ICICI Bank also announced investing Rs 1,000 crore for an equity in excess of 5 per cent. HDFC will infuse Rs 1,000 crore, while Axis Bank will invest up to Rs 600 crore to purchase 60 crore shares in the bank.

There will be a three year lock-in period for all the investors. However, the lock-in period for SBI would be only for 26 per cent of shareholding. It would be 75 per cent in case of other investors.

The government has notified the Yes Bank reconstruction scheme as per which the moratorium on the troubled private sector lender will be lifted on March 18.

Federal Bank to invest Rs 300 cr in Yes Bank at Rs 10 per equity share

Kerala-based Federal Bank Limited has decided to invest Rs 300 crore in Yes Bank and has issued an equity commitment letter to subscribe to the ailing lender's equity shares.

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The Bank said it has issued an equity commitment Letter for subscription of 300 million shares of Yes Bank at a price of Rs 10 per equity share.

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The commitment is pursuant to the scheme of reconstruction of Yes Bank proposed by the Reserve Bank of India under section 45 of the Banking Regulation Act, 1949 and subject to regulatory approvals and other conditions as set out in the Letter.

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On Friday, the Union Cabinet, headed by Prime Minister Narendra Modi, approved the Yes Bank rescue plan backed by the State Bank of India (SBI).

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SBI has proposed to invest Rs 7,250 crore in Yes Bank by purchasing 7,250 million shares at Rs 10 apiece.

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LIC, HDFC, ICICI, Axis and Kotak Mahindra and the other investors have already come forward to invest in the cash-starved Yes Bank.

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Federal Bank ties up with Magicbricks to recover dues from 30 big accounts

Private sector lender Federal Bank has tied up with online real estate platform Magicbricks for listing and e-auctioning of immovable properties repossessed by it in recovery proceedings. The move is aimed at speedy recovery of the bank's impaired assets, while helping customers get the best rate in the market for their properties, Federal Bank said.

The lender has got into a pan-India arrangement with the housing portal in order to recover dues in 30 major accounts amounting to Rs 50 crore in the fourth quarter of this year. Under the deal, Federal Bank will leverage on Magicbrick's reach across demographic profiles and consumer categories, removing any geographical restrictions for buyers, it added.

Sudhir Pai, CEO, Magicbricks, said its e-auction platform has, during the past two years, evolved as a cost-effective way for banks to liquidate their re-possessed assets and lessen their financial burden. Public sector firm Indian Overseas Bank had earlier tied up with the company for its repossessed properties worth around Rs 800 crore.

Mastercard, Federal Bank join hands to make digital transactions safer

Global payments technology major Mastercard has joined hands with Federal Bank to provide an additional layer of security for digital transactions.

Mastercard has entered into a partnership with Federal Bank to offer identity check to the bank's cardholders, it said in an announcement.

Mastercard Identity Check is a global authentication program that uses the latest authentication standards of EMV 3-D Secure to provide an additional layer of security for digital transactions and facilitate higher approval rates, improving the authentication experience for merchants, issuers and cardholders.

It provides banks with a secure and user-friendly way to authenticate cardholders without the use of static passwords, increasing approval rates.

The facility decreases online shopping cart abandonment, reduces fraud and improves conversion rates for e-commerce merchants. Implementation in other regions has shown an increase in digital transaction approvals of nearly 13 per cent.

"We believe that this new solution will provide a seamless experience and will find instant affinity among our Mastercard cardholders," said Shalini Warrier, chief operating officer, Federal Bank.

The launch of Identity Check program by Federal Bank and Mastercard will go a long way in providing ease of payments with advanced security to shoppers, said Govind Setlur, chief executive officer, Wibmo, payment solutions partner for Federal Bank.

"Mastercard is committed to creating innovative payments solutions that deliver enhanced safety and security at every touchpoint, to enable simple, frictionless consumer experiences," said Sujay Vasudevan, vice-president, cyber & intelligence solutions, South Asia, Mastercard.