InvestorQ : How good is the announcement that Yes Bank has got shareholder approval to raise capital to the tune of Rs.10,000 crore?
manisha Kolvenkar made post

How good is the announcement that Yes Bank has got shareholder approval to raise capital to the tune of Rs.10,000 crore?

Answer
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Mahima Roy answered.
7 months ago


That is good news on paper but it depends on how well that can actually be executed. Even in the past, Yes Bank had spoken at length about capital raising but had failed to put up any reliable investor to take the stake. Yes Bank desperately needs the money as its core capital is almost below the statutory level of 8%. But that is only possible if there is some credibility built around the balance sheet and some concrete plans for the future. In the last couple of months there are also a number of corporate governance issues that have cropped up and that has not done too well for the valuations of the stock. More than the announcements, the market would not be more impressed by the actual execution.