Money & Banking

Yes Bank board to meet on March 26 to discuss capital raising plans

Our Bureau Mumbai | Updated on March 25, 2020 Published on March 25, 2020

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.

Published on March 25, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.