INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of private sector lender YES Bank tumbled 11 per cent in Monday's trade even as the company said it received approval from
the Reserve Bank of India (RBI) to raise capital.
YES Bank in an exchange filing said, “it has received an acknowledgment from the Reserve
Bank of India to go ahead with the proposed increase in its authorized share capital.” The bank will now seek necessary shareholders'
consent.
At around 9.50 am, YES Bank shares were trading nearly 9 per cent lower at Rs 44.40 on BSE
The bank is reeling under huge exposure
It plans to raise Rs 800 crore from the market
In a release last week, it had said the bank has received strong interest from multiple foreign as well as domestic private equity and
strategic investors for this capital raise.
Meanwhile, bank’s promoter Rana Kapoor has been reducing his stake in the bank in a gradual
Last week, YES Capital, owned by Kapoor, sold 1.8 per cent shareholding in the Bank
In a release, it said the proceeds will be utilized to prepay balance outstanding Non-Convertible Debentures (NCDs) of YCPL subscribed by
various schemes of Franklin Templeton Asset Management.
Moody’s in a report earlier this month said Altico Capital’s default was credit
negative for the lenders with significant exposure to the real estate sector
Among the banks, Moody's said, YES Bank and IndusInd Bank have
the largest direct exposure to commercial real estate and will be susceptible to asset quality difficulties if the sector continues to