Our Bureau

Private sector lender YES Bank has been able to raise the expected ₹4,500 crore from anchor investors, with nearly half the sum coming from Tilden Park Capital Management.

Market sources said Tilden Park has invested over ₹2,500 crore in the anchor investor portion. The US-based asset manager was also in the fray to invest in the lenderbefore it was put under the reconstitution scheme.

Other investors include HDFC Life Insurance Company;Singapore-based fund management company, Amansa Capital; and UK-based fund management firm, Jupiter Fund.

YES Bank’s FPO will open on July 15 and close on July 17, and the lender hopes to raise ₹15,000 crore of capital. State Bank of India, which already has 48.2 per cent stake in YES Bank, has announced it will invest up to ₹1,760 crore in the FPO.

The floor price was fixed at ₹12 apiece.

The bank’s scrip has plunged sharply in the last few days. On Tuesday, it closed 5.2 per cent lower on the BSE at ₹20.95 apiece.

YES Bank’s Managing Director and CEO, Prashant Kumar, has said the capital-raise will help take care of growth requirements for the next two years and also help meet the regulatory norms. “The CET 1 ratio will increase from 6.3 per cent to 13 per cent,” he had said.

Analysts said they remain concerned about formation of new bad loans that could keep provisions high. “Retail deposit is the key for any bank for lower cost of funds; however, YES Bank has witnessed sizable deposit withdrawal over last two quarters. Rebuilding CASA and deposits is a challenging task and would take longer time,” said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking.

comment COMMENT NOW