Cash-starved private sector lender Yes Bank on Thursday approved a proposal to raise Rs 5,000 crore by way of share sale, including qualified institutions and rights issue. The board meeting held on Thursday cleared this proposal. This fund raising will be over and above Rs 10,000 crore cleared on February 7. The board at its meeting has approved subject to receipt of requisite approvals, raising of funds for an additional amount aggregating up to Rs 5,000 crores Yes Bank said in a regulatory filing.
The fund may be raised in one or more tranches by “way of issuance of securities but not limited to through a qualified institutions placement/ public issue, rights issue, global depository receipts, American depository receipts, foreign currency convertible bonds or any other permissible mode,” it said.
So, in aggregate the fund raising cannot exceed Rs 15,000 crore, it added. Facing the collapse of the fourth largest private lender, the Reserve Bank sacked Yes Bank management and placed it under an administrator in the evening of 5 March with a 30-day moratorium.
On March 14, the government notified the rescue plan drafted by the RBI under which State Bank of India would pick up around 49 percent equity in Yes Bank. Private lenders joined SBI to shield the banking sector from a widespread crisis by injecting Rs 10,000 crore into the bank with SBI alone infusing Rs 6,050 crore.
