Yes Bank approves fund raising plan

Yes Bank, the capital-starved bank, which was bailout by the consortium led by SBI, has approved a fund raising plan for an additional amount aggregating up to Rs 5,000 crore.

The fund may be raised in one or more tranches by way of issuance of securities (but not limited to) or through qualified institutions placement/public issue, rights issue, global depository receipts, American depository receipts, foreign currency convertible bonds or any other permissible mode. This resolution was passed in the board meeting held on March 26, 2020.

Post bailout by SBI-led consortium, the rating agency has also upgraded the credit rating of Yes Bank for various instruments. Besides, ICRA expects an additional capital requirement of nearly Rs 9,000-Rs 13,000 crore in the next couple of years.

For 9MFY20, the bank posted a net loss of Rs 19,047 crore while, its NII declined by almost 24.3 per cent YoY.

In a response to this development, the stock of Yes Bank in today’s trading session opened gap-up at Rs 29.3 apiece, up by nearly 10 per cent from its previous close. The stock went further up to touch an intraday high of Rs 32.85. However later, the stock cooled down and at 11.11 am, it was trading at Rs 27.5 apiece, up by 3 per cent.