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The reconstituted board of private sector lender Yes Bank is set to meet on Thursday to finalise its capital raising plans. Sources privy to the development said the bank is keen to have its funding in place by March 31 and a number of global investors have shown interest in investing in the private sector lender. “Talks are on with a number of investors and it is hoped that the capital raising will be finalised soon,” said the source.
Yes Bank is expected to raise another about ₹10,000 crore in the second round of funding after the consortium of domestic banks and financial institutions led by State Bank of India pumped in about ₹10,000 crore earlier this month. “The Board of Directors of Yes Bank is scheduled for Thursday, March 26, 2020, at Mumbai to consider, amongst other agenda items, a proposal for raising funds by issue of equity shares, depository receipts, convertible bonds, debentures, warrants, any other equity linked securities, through permissible modes including but not limited to a qualified institutions placement, rights issue, further public offer, etc., subject to such approvals, as may be required under applicable laws,” the lender had said in a recent regulatory filing.
SBI Chairman Rajnish Kumar had said that the first round of capital took care of the regulatory capital requirement. “The second round would partially take care of any shortage on regulatory side but will be used largely for growth,” he had told reporters.
Significantly, this will be the first meeting of the reconstituted board of Yes Bank after the government and the Reserve Bank of India had worked out the lender’s reconstruction plan. The moratorium on the bank was lifted on March 18. The bank’s RBI appointed administrator Prashant Kumar is the Managing Director and CEO designate.
With the capital now in place, rating agencies have also begun to review its ratings. ICRA has also upgraded and placed on Rating Watch with Developing Implications instruments of about ₹52,611 crore of Yes Bank. The lender’s scrip was down by 13.41 per cent on BSE in early morning trade on Wednesday.
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