The Hindu Business Line : YES Bank to raise $200-m equity

Tie-up for ATMs: Mr Rana Kapoor, Managing Director and CEO, YES Bank (left), with Mr Nigel Lee, Senior Vice- President, First Data, at a press conference in Mumbai on Thursday.

Our Bureau

Mumbai, July 2 YES Bank is looking to raise $200-million Tier-I equity capital either through a follow-on public issue or through a qualified institutional placement. The bank is also looking to raise Rs 500 crore through hybrid Tier-I bonds or lower Tier-II bonds in the next three to four months, said Mr Rana Kapoor Managing Director and CEO. He was speaking to reporters on the sidelines of a press conference to announce the bank’s tie-up with First Data Corporation to set up ATMs. “The objective of raising equity is to ensure sustained growth of the bank,” said Mr Kapoor. After the equity issue, the promoters’ holding will come down in proportion to their current holding, he added.

Rabo Bank, which has 18 per cent share in YES Bank, has given a firm indication that it is interested in maintaining its investment in the latter.

YES Bank is looking to see growth of 40-45 per cent in its balance-sheet and 35-40 per cent in advances in the current fiscal.

It plans to set up ATMs jointly with FDC. Under the agreement, FDC will deploy and maintain the ATMs, while YES Bank will provide services such as cash management, customer resolution and settlement.