 "YES Bank may raise Rs 3k cr")
YES Bank is likely to raise up to Rs 3,000 crore ($500 million) of capital to finance expansion and strengthen its capital base.
The programme — either through a preferential allotment, private placement or sale of shares to qualified institutional buyers — will be launched depending on market conditions.
“We had taken permission from our shareholders last year for issuance of $500-million equity and that is the only permission available with us at this moment,” said Rajat Monga, chief financial officer and senior group president (financial markets).
YES Bank closed 2013-14 (April-March) with a capital adequacy ratio (CAR) of 14.4 per cent, according to Basel-III rules. The Tier-I CAR was 9.8 per cent.
Total advances were Rs 55,633 crore at the end of March, up 18.4 per cent from a year earlier. Corporate banking, representing large corporate loan accounts, had 63.3 per cent share of the credit portfolio.
The money will also be used to finance the lender's network expansion. YES Bank has been aggressively doing so since inception. It has become the fourth largest private sector bank, despite being the youngest lender in the country, starting operations only a decade earlier. The total branch count was 560 at the end of March and it aims to increase it to 700 by the end of the current financial year.
Analysts note the fund-raising will also allow the bank to trim its promoters' stake. According to Reserve Bank of India's guidelines, the promoters need to pare their stake to 10 per cent. At the end of March, they held 25.55 per cent share in the bank, compared to 25.72 per cent a year earlier.
The programme — either through a preferential allotment, private placement or sale of shares to qualified institutional buyers — will be launched depending on market conditions.
“We had taken permission from our shareholders last year for issuance of $500-million equity and that is the only permission available with us at this moment,” said Rajat Monga, chief financial officer and senior group president (financial markets).
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He added the bank would need to raise money if economic growth revived and lending opportunities increased.
YES Bank closed 2013-14 (April-March) with a capital adequacy ratio (CAR) of 14.4 per cent, according to Basel-III rules. The Tier-I CAR was 9.8 per cent.
Total advances were Rs 55,633 crore at the end of March, up 18.4 per cent from a year earlier. Corporate banking, representing large corporate loan accounts, had 63.3 per cent share of the credit portfolio.
The money will also be used to finance the lender's network expansion. YES Bank has been aggressively doing so since inception. It has become the fourth largest private sector bank, despite being the youngest lender in the country, starting operations only a decade earlier. The total branch count was 560 at the end of March and it aims to increase it to 700 by the end of the current financial year.
Analysts note the fund-raising will also allow the bank to trim its promoters' stake. According to Reserve Bank of India's guidelines, the promoters need to pare their stake to 10 per cent. At the end of March, they held 25.55 per cent share in the bank, compared to 25.72 per cent a year earlier.