Yes Bank Ltd has approved plans to raise up to Rs 5,000 crore ($666 million) to strengthen its capital base after the government rescued the private-sector lender.
This fundraising is in addition to the mid-sized private bank's over and above Rs 10,000 crore already approved plan backed by State Bank of India (SBI) earlier this month, taking the total capital raising plan to Rs 15,000 crore.
The bank's board, at its meeting today, has approved, subject to receipt of requisite approvals, raising of funds for an additional amount aggregating up to Rs 5,000 crores,” the bank said in a regulatory filing on Thursday.
“The bank will raise the additional amount by way of issuing securities but not limited to through a qualified institutions placement/public issue/rights issue/global depository receipts/American depository receipts/foreign currency convertible bonds or any other permissible mode,” it said.
This comes after the government notified the rescue plan drafted by the Reserve Bank of India (RBI) under which SBI infused Rs 7,250 crore to pick up around 49% equity in Yes Bank.
The rescue plan was supported by several other private lenders including ICICI Bank and HDFC pumping in Rs 1,000 crore each, Kotak Mahindra Bank and Axis Bank Rs 600 crore each, Federal Bank and Bandhan Bank Rs 350 crore each and India First Bank infusing Rs 250 crore.
There will be a three-year lock-in for all investors where SBI will not be allowed to reduce its stake to below 26%. On March 5, the central bank placed Yes Bank under a moratorium.
Post the rescue, the bank, now led by a former chief financial officer of SBI, resumed normal operations on March 18.
Last week, the troubled bank reported a wider-than-expected quarterly loss of Rs 18,560 crore ($2.5 billion) and said it was continuing to analyse the allegations of wrongdoing by former managing director Rana Kapoor.
