New Delhi: Yes Bank Ltd is exploring to raise around $1 billion through a public offer of shares to boost its capital, according to reports.Also Read - RBI Recruitment 2022: Notification Out For 14 Posts on rbi.org.in | Apply Before This Date
The bank is expected to commence its capital raise soon, which could help Yes Bank raise its Tier-1 core capital ratio to around 10 per cent, from 6.3 per cent as of March, it said. Also Read - RBI May Hike Interest Rates By Up To 100 Basis Points. Check Details Here
The Yes Bank stock has rebounded by 73 per cent, since the Reserve Bank of India launched a rescue plan after putting it under smoratorium. Also Read - Sovereign Gold Bond Scheme: 9th Series Of SGB 2021-22 To Open Today. All You Need To Know About It
Yes Bank, which received Rs 10,000 crore of capital infusion from eight banks including the SBI, can issue instruments including shares or convertible bonds.
Yes Bank CEO Prashant Kumar had said the bank plans to raise Rs 15,000 crore to boost its strength.
In its post results presentation, Yes Bank said the management and board of directors have made an assessment of its ability to continue as a going concern, based on the projected financial statements for the next 3 years and are satisfied that the proposed capital infusion and the Bank’s strong customer base and branch network will enable the Bank to continue its business for the foreseeable future, so as to be able to realise its assets and discharge its liabilities in its normal course of business.
While further reduction in deposits lost post moratorium may cast material uncertainty, particularly in the current Covid scenario, the Bank under the leadership of new management and reconstituted board is confident that it can tide over the current issues successfully. This belief is reinforced by the pedigree of new investors of the Bank (led by State Bank of India and other financial institutions).