Yes Bank board to meet on Friday to consider fund raising plan

By: |
January 18, 2021 8:12 PM

The bank had floated follow-on public offer (FPO) of Rs 15,000 crore in July 2020 to shore up its buffers that have fallen below the regulatory thresholds. However, it was subscribed 95 per cent on the final day so it raised Rs 14,267 crore through its FPO.

Yes Bank was rescued by State Bank of India and a clutch of private-sector lenders in March 2020 from the collapse.

Yes Bank’s board will meet on Friday to consider a proposal for further fundraising through various means, according to the private sector lender.

The bank had floated follow-on public offer (FPO) of Rs 15,000 crore in July 2020 to shore up its buffers that have fallen below the regulatory thresholds. However, it was subscribed 95 per cent on the final day so it raised Rs 14,267 crore through its FPO.

Yes Bank in a regulatory filing on Monday said the board at its meeting — scheduled on January 22, 2021, for approving third-quarter results — will also discuss and consider raising of funds by issue of equity shares, debentures, warrants any other equity-linked securities, through permissible modes subject to necessary shareholders or regulatory approvals.

However, the filing did not give an indication on the quantum of the amount that the bank intends to raise.

After battling stress for two years, Yes Bank was rescued by State Bank of India and a clutch of private-sector lenders in March 2020 from the collapse. It had reported a loss of 18,564.2 crore, in the third quarter of 2019-20 as against a profit of Rs 1,000 crore a year back due to mounting bad loans and alleged mismanagement by erstwhile promoters.

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