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Mahima Roy made post

What are the fund raising plans now for Yes Bank because they have already stated they are not taking funds from one of the investors?

Answer
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Aditi Sharma answered.
8 months ago


The big challenge for the Yes Bank has been the infusion of equity capital into the bank. The bank is currently having a core capital ratio of 8.70%, marginally above the statutory minimum of 8%. Hence at the current situation it is hard for Yes Bank to grow unless they infuse equity on top priority. The bank had been in talks with Canadian investors, Erwin Singh Braich / SGPG Holdings for raising $1.2 billion. However, the talks did not make much progress and were even nearly shelved after some newspaper reports carried notes on the background of the potential acquirers.

Subsequently, Yes Bank has said that it is favourably considering an offer from Citax Holdings for $500 million. As of now it is not clear on the status on the $25 million investment in the preferential offer that Rakesh Jhunjhunwala had committed to the bank. But early equity capital raising will be really positive for the sentiments surrounding the bank.