Money & Banking

YES Bank to raise $1-billon fresh equity

Our Bureau Mumbai | Updated on January 24, 2018

Rana Kapoor, MD and CEO, YES Bank (file photo)

Rana Kapoor re-appointed MD and CEO

YES Bank shareholders approved 12 resolutions, including re-appointment of Rana Kapoor as the MD and CEO, at its 11th Annual General Meeting (AGM) on Saturday. Kapoor’s re-appointment will be for a period of three years.

“The re-appointment was approved with unanimous majority (99.97 per cent) excluding the vote of the shareholder, Madhu Kapur family,” YES Bank said in a statement.

Madhu Kapur, the bank’s second largest shareholder after Rana Kapoor and the widow of co-founder Ashok Kapur, has been in a legal dispute with YES Bank since June 2013, seeking rights to nomination of directors on the bank’s board.

A majority of shareholders also approved the re-appointment of MR Srinivasan as non-executive and non-independent Director of YES Bank, and Diwan Arun Nanda and Ajay Vohra as Independent Directors. On Friday, Madhu Kapur had moved court challenging the re-appointment of Srinivasan and Nanda on grounds that they were above the age of 70, as against the norms that state an eligibility of 35-70 years. YES Bank had earlier said that Srinivasan and Nanda will not assume office till June 17. On Thursday, the Bombay High Court did not make its order public and allowed YES Bank and Madhu Kapur to resolve dispute through mediation. The matter has been listed in the court for June 17.

Fresh fund raising

At the AGM, the bank also got approvals through special resolution to raise fresh equity aggregating up to $1 billion and also issue non-convertible debentures (NCDs) and bonds up to a total amount of ₹10,000 crore. The bank can also increase its borrowing limits to ₹50,000 crore (from the existing limit of ₹30,000 crore).

Further, YES Bank received shareholders’ nod to increase foreign portfolio investors and FIIs investment limits to 74 per cent of the paid-up capital of the bank.

Published on June 07, 2015

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