Capital adequacy ratio above regulatory requirements, says Yes Bank

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Published: January 16, 2020 3:30:21 AM

The investment offer of $500 million from Citax Holdings and Citax Investment Group was still under consideration and could not be taken up in the meeting held on January 10.

After the announcement, Yes Bank’s shares ended 3.2% higher than the previous day’s close at Rs 39.80 on the BSE on Wednesday.After the announcement, Yes Bank’s shares ended 3.2% higher than the previous day’s close at Rs 39.80 on the BSE on Wednesday.

Private lender Yes Bank on Wednesday clarified that its capital adequacy ratio (CAR) was comfortably above regulatory requirements.

“The bank’s overall capital adequacy ratio is comfortably above regulatory requirements and all efforts are being made to financially strengthen the bank even further,” the bank said in a stock exchange filing.

After the announcement, Yes Bank’s shares ended 3.2% higher than the previous day’s close at Rs 39.80 on the BSE on Wednesday.

In another exchange filing on Tuesday, Yes Bank said it would convene an extraordinary general meeting (EGM) on February 7, 2020, to seek approval to raise authorised share capital of the bank from Rs 800 crore to Rs 1,100 crore. The bank will also seek approval to raise fund of Rs 10,000 crore in order to augment the lender’s core capital.

Yes Bank on Friday informed the exchanges that it had decided to drop the $1.2-billion investment offer of Erwin Singh Braich, backed by Hong Kong-based SPGP Holdings. However, the bid by Citax Holdings and Citax Investment Group is still under consideration and will be taken up in the next board meeting.

The board had decided to raise funds up to Rs 10,000 crore in one or more tranches through QIP, GDR, ADR, FCCB or any other methods on a private placement basis.

This was lower than $2 billion the bank had earlier proposed to raise in November 30, 2019.The board had rejected the offer made by Braich even after the Canadian industrialist extended the validity of its offer until January 31, 2020. Earlier, the founder of the Braich Group of Companies and Trusts, had made a $1.2-billion bid on December 10, 2019.

The investment offer of $500 million from Citax Holdings and Citax Investment Group was still under consideration and could not be taken up in the meeting held on January 10.

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