Yes Bank plans to raise ₹8,000 crore through rights issue
1 min read . Updated: 17 Jun 2020, 01:26 PM IST- That could help Yes Bank raise its Tier-1 core capital ratio to around 10%
Yes Bank Ltd. is planning to raise at least ₹8000 crore in a public offering of shares to boost its capital, according to people familiar with the matter.
The bank, which counts two of India’s largest lenders State Bank of India and HDFC Ltd. as its investors, will kick off the fundraising soon, the people said. That could help Yes Bank raise its Tier-1 core capital ratio to around 10%, from 6.3% as of end-March, said the people, who asked not to be identified as the information is private.
A share sale would follow Yes Bank’s regulatory application to fast-track its capital raising after the lender’s stock rebounded 73% since the Reserve Bank of India rescued it in March.
Yes Bank, which received ₹10,000 crore of capital infusion from eight local lenders led by State Bank of India, can issue instruments including shares or convertible bonds, it said in a filing in March. Its Chief Executive Officer Prashant Kumar had said the bank plans to raise ₹15,000 crore to boost its financial strength.
Deliberations are ongoing and details of the fundraising could still change, the people said. A representative for Yes Bank didn’t immediately respond to comment.
This story has been published from a wire agency feed without modifications to the text.
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