The Hindu Business Line : Yes Bank to raise Rs 500-cr

MUMBAI: Yes Bank, plans to raise around Rs 500-crore by September as Tier-II capital and around $ 200-million in its Tier-I structure through an equity issuance, a top bank official said.

"We are planning to raise approximately Rs 500-crore of hybrid Tier I as well as lower Tier II capital over the next 3-4 months,'' Yes Bank's Chief Executive Officer & Managing Director, Mr Rana Kapoor, told reporters on the sidelines of a press meet her e.

The bank's capital adequacy is at a level of 16.6 per cent. "We have a fair amount of Tier II capital raising capacity including perpetual capital, which we intend to tap between July and October,'' Mr Kapoor said. The bank also plans to raise up to $ 2 00-million in its Tier-I capital structure by end of fiscal 2010, depending on the price prevailing at that particular point of time.

This fund-raising can be through fresh equity, follow-on public offer or a private placement,'' he said. Mr Kapoor pointed out that the objective of fund-raising through equity is to ensure sustained growth for the bank. Replying to a query on whether Rabo Bank would dilute its stake, Mr Kapoor said that all stakeholders would dilute their stakes proportionately. - PTI

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