Grapevine: Carlyle, Brookfield, Tilden Park Capital may eye Yes Bank
Photo Credit: Reuters

Troubled private sector lender Yes Bank may attract interest from a clutch of foreign investors as part of a massive second round of capital infusion after its rescue by a consortium of banks led by State Bank of India (SBI), people with knowledge of the matter told Moneycontrol.

"The likes of private equity giant Carlyle, Canada’s Brookfield, US-based Tilden Park Capital and other global suitors, may explore an investment in Yes Bank once the fourth quarter earnings of the lender are published," one of the persons said.

The second round may see another infusion of around Rs 10,000 crore ($1.3 billion at current exchange rate) from foreign investors, another person said.

For the rescue and the first round of fundraising, SBI was joined by other lenders such as HDFC, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IDFC First Bank, Federal Bank and Bandhan Bank, which collectively pumped in Rs 11,000 crore.

Due to its failure to raise capital, Yes Bank has witnessed a sharp outflow of deposits in the past few quarters. Its deposit base has shrunk around Rs 28,000 crore between 31 December 2019 and 5 March 2020, the report said.

Last month, New York-based private equity investor JC Flowers & Co. LLC, Tilden Park Capital Management LP, Silver Point Capital and OHA (UK) LLP (part of Oak Hill Advisors) made binding offers to invest in Yes Bank.

However, these binding offers were made before the moratorium which was imposed during the first week of March. It will be interesting to see if these international financial investors are still up for grabbing a stake in Yes Bank in its second round of fundraising.

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