Private sector lender Yes Bank has announced raising its authorized share-capital base by 37 per cent to Rs 1,100 crore as part of the broader objective to garner more funds from investors, thus helping enhance its lending corpus to drive loan growth.
The board of the Mumbai-based lender also delegated powers to chief executive Ravneet Gill to negotiate future fund-raising with prospective investors. The announcements made to stock exchanges late Friday, however, did not specify the amount of capital the bank was planning to immediately raise.
Yes Bank shares were the biggest gainers on the benchmark Nifty on Friday, climbing 4.44 per cent to Rs 59.95 apiece on the National Stock Exchange. The broader index climbed 0.68 per cent. Announcements on the fund-raising measures came after trading ended in Mumbai.
Earlier this month, Yes Bank raised Rs 1,930 crore through a qualified institutional placement (QIP). After its latest round of fund-raising, Yes Bank’s core Tier I Capital ratio improved to 8.55-8.60 per cent from 8 per cent reported in June 2019, giving the bank sufficient headroom over the mandatory 8 per cent Tier I capital base it is required to maintain by March 2020.
Read EquityPandit’s Nifty Bank Outlook for the Week