The board of directors of YES Bank, on Friday, approved a proposal to “raise growth capital” by increasing the authorised share capital of the bank to ₹1,100 crore from the current ₹800 crore.

This would be done by increasing the equity shares to 450 crore equity shares of ₹2 each, amounting to ₹900 crore from the current 300 equity shares of ₹2 each that total ₹600 crore. The preference shares would be kept constant at two crore shares of ₹100 each aggregating to ₹200 crore.

“The bank would proceed with seeking approval from Reserve Bank of India for amendment in Memorandum of Association of the bank for increase in authorised share capital,” YES Bank said in a regulatory filing. The board also delegated the powers to the capital-raising committee to decide the method and quantum of fund-raising, including preferential allotment route.

It also authorised Ravneet Gill, Managing Director and CEO of the private sector lender, to negotiate term sheets with prospective private investors.

Previously, on August 14, YES Bank had raised ₹1,930 crore through a qualified institutional placement. Five investors – Societe Generale, Key Square Master Fund LP, BNP Paribas Arbitrage, HDFC Trustee Co Ltd and Key Square Master Fund II LP – together accounted for 65.5 per cent of the total investment.

This exercise took its common equity tier-1 capital to 8.60 per cent from 8 per cent. However, it will require more capital given the stressed assets on its balance sheet. The YES Bank scrip gained 3.75 per cent on the BSE and closed at ₹59.50 apiece.

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