YES Bank to raise ₹10,000 cr; rejects Braich’s $1.2-bn offer

Crisis-hit private sector lender YES Bank announced its plans to raise up to ₹10,000 crore in one or more tranches after a board meeting on Friday. The bank’s board said it will mull fundraising options via a mix of debt and equity instruments like Global Depository Receipts (GDRs), American Depository Receipts (ADRs), foreign currency convertible bonds (FCCBs), qualified institutional placement (QIP), or any other method on a private placement basis.

YES Bank has rejected Canadian industrialist and philanthropist Erwin Braich’s $1.2-billion offer. “The bank has received an updated proposal from the investor extending the validity of its offer until January 31, 2020, for the bank's consideration and further evaluation. However, the board has decided not to proceed with the offer,” the bank said.

There is little clarity on Citax Holdings’ offer of $500 million. The bank said it will evaluate the offer at the next board meeting. Analysts point out YES Bank’s tier 1 capital is precariously low, and this has been a huge concern for shareholders. The bank needs to urgently shore up its capital base to clean up its books and increase provisioning for bad loans.

The YES Bank stock declined 4.96% to end the trading session at ₹44.95 on the National Stock Exchange on Friday.