Yes Bank to raise $160-175 mn in two months

Written by Agencies | Mumbai, January 29: | Updated: Jan 29 2008, 22:19pm hrs
Private sector lender Yes Bank will raise 160-175 million dollars over the next two months to fuel its expansion plans, a top bank official said.

We have obtained our boards approval to issue 2 crore shares and would raise 160-175 million dollars in the next two months, Yes Banks Managing Director and CEO Rana Kapoor said in Mumbai on Tuesday.

This will be done either through a qualified institutional placement (QIP) or a private placement, he said.

The funds are being raised to expand Yes Banks retail banking, help in its lending and bolster its capital adequacy ratio (CAR). The banks CAR presently stands at 14.5 per cent.

The bank also plans to foray into broking and asset reconstruction businesses in the first-half of next fiscal, Kapoor added.

While the broking business would be conducted by its 100 per cent subsidiary, the asset reconstruction company (ARC) would have a foreign bank and three Indian public sector banks as partners, Kapoor said, declining to identify them.

Two other businesses, investment banking and the asset management company would be set up in the second-half of FY 09, he said. These too would be 100 per cent subsidiaries of Yes Bank.

Yes Banks branch strength presently stands at 60 with another 57 at various stages of development. By end of this fiscal, we plan to have 75 branches and by FY09, 175 branches, Kapoor said.