Yes Bank to raise share capital, stock tanks

Yes Bank Limited on Monday has received acknowledgement from Reserve Bank of India (RBI) to go ahead with the proposed increase in its authorized share capital. Despite such a positive development, the stock of Yes Bank tanked more than 15 per cent to hit 10-year low of Rs. 40.95 in BSE.

On September 25, the private bank had applied for approval to increase its authorized share capital. Yes bank said in the press release that it has received strong interest from multiple foreign, as well as, domestic private equity and strategic investor for this capital raise. “We remain firmly on course to raising growth capital subject to the necessary approvals”, it added. The Bank shall now seek necessary shareholder’s consent and proceed expeditiously with its capital raise.

Yes Bank Limited is India’s fifth largest private sector bank founded by Rana Kapoor and Ashok Kapur in 2004. It primarily operates as a corporate bank, with retail banking and also asset management as subsidiary functions. Yes Bank derives most of its revenues through arranging syndicated loans and through corporate banking. It operates as three entities- Yes bank, Yes Capital and Yes Asset Management Services.

On Monday, the stock of Yes Bank Limited opened at Rs. 48.40 per share and made an intraday high and low of Rs. 49.10 and Rs. 40.95, respectively on the BSE. At the end of the session, the stock closed at Rs. 41.45, down by 15.06 per cent.