In a fresh letter to RBI, former Yes Bank Independent Director raises concerns on corporate governance
The shareholders of YES Bank on Friday gave the go-ahead to the private sector lender for its capital raising plans.
“The resolutions related to the following business as set out in the notice of EGM were passed by the members with requisite majority: To increase authorized share capital and consequent alteration of capital clause of the Memorandum of Association (Ordinary Resolution); to authorise capital raising through issuance of equity shares or other convertible securities (Special Resolution),” YES Bank said in a regulatory filing on Friday after the extraordinary general meeting.
YES Bank had called for an EGM on February 7 to increase the authorised share capital and consequently alter the capital clause of the memorandum of association.
The bank had proposed to increase the authorised share capital to ₹1,100 crore divided into 450 crore equity shares of ₹2 each totalling ₹900 crore and two crore preference shares of ₹100 each amounting to ₹200 crore. The current authorised share capital of the bank is ₹800 crore.
In a board meeting on January 10, the board of the private sector lender had decided to raise up to ₹10,000 crore in funds through a qualified institutional placement, GDR, ADR or FCCBs.
It had also decided not to proceed with the investment proposal by Erwin Singh Braich / SPGP Holdings.
The lender was initially planning to raise about $2 billion through preferential allotment of shares as it tried to shore up its capital base. Of this amount, Canadian billionaire Braich or SPGP Holdings was interested in investing $1.2 billion.
YES Bank scrip gained 0.39 per cent on BSE and closed at ₹38.70 apiece.