Keeping in check of the adverse financial repercussions of the Covid- 19 pandemic on businesses across the nation, Private Sector lender Yes Bank on Tuesday (March 2, 2021) said its shareholders have now approved a proposal for raising Rs 10,000 crore capital with the requisite majority with many as 98.78% of the votes being cast in favour of the resolution to authorise the bank to raise capital through issuance of equity shares or other securities.
Furthermore, the bank plans on strengthening the common equity tier 1 (CET 1 or core capital) ratio alongwith ensuring that it has enough capital to support growth and maintain adequate buffers and raising capital to deal with any unforeseen impact.
The bank intends to raise the capital through various modes including a Qualified Institutions Placement (QIP), from international markets through ADRs/GDRs; foreign currency convertible bonds or any other securities which are convertible into exchangeable with equity shares, in Indian rupee or foreign currency or a public issue.
Witnessing banks shoring up their capital base for on-lending as the economy shows signs of recovery, The RBI too has been asking them to strengthen their capital. Shares of Yes Bank on Monday settled with marginal gains of 0.28 per cent at Rs 17.70 on the BSE.
