India's Yes Bank to exit reconstruction scheme after share lock-in period ends

BENGALURU (Reuters) - India's Yes Bank Ltd said on Friday the Reserve Bank of India would allow it to exit a reconstruction scheme put in place more than two years ago only after the share lock-in period ends.

The bank said in a regulatory filing the lock-in period for shares of existing shareholders would end in March next year.

Yes Bank did not respond to a Reuters request for comment seeking more details.

In March 2020, Yes Bank's financial position had seriously deteriorated, sparking contagion risk in the banking system from the then fifth largest bank in India.

Earlier this week, Yes Bank approved private equity firm JC Flowers ARC as the buyer for its $6 billion stressed loan portfolio.

(Reporting by Rama Venkat in Bengaluru; Editing by Krishna Chandra Eluri)