Yes Bank board clears Rs 5,000 crore capital raising plan

Mumbai (Maharashtra) [India], Mar 27 (ANI): Private sector lender Yes Bank will raise up to Rs 5,000 crore as equity capital in the second round to meet regulatory requirements and support business.

Early this month, the bank received an equity infusion of Rs 10,000 crore from eight domestic banks led by State Bank of India.

The bank's board of directors approved raising of funds for an additional amount aggregating up to Rs 5,000 crore in one or more tranches by issuing securities.

The bank has kept options open to use routes like qualified institutional placement, public issue, rights issue, global depository receipts, American depository receipts, and foreign currency convertible bonds or any other permissible mode, it said in a statement.

According to rating agency ICRA's estimates, Yes Bank will require equity infusion of Rs 9,000 crore to 13,000 crore to meet regulatory capital requirements, including capital conservation buffers.

Yes Bank was run by Administrator Prashant Kumar under the reconstruction scheme which came into effect on March 5. Kumar is now the Managing Director and Chief Executive Officer. (ANI)