To fund business growth, private sector lender YES Bank intends to raise Rs 500 crore from bonds by September.
"We have plans to raise Rs 500 crore from Tier II bonds during the current quarter," YES Bank Managing Director Rana Kapoor said here yesterday.
He said every quarter the bank would raise capital and plans to raise Rs 1,500 crore by March 2011.
The money will be raised for funding infrastructure growth and agri growth, Kapoor said, adding that it would also provide an opportunity to the bank to provide long-term loans to infrastructure companies.
Asked about impact of RBI monetary action on interest rate, Kapoor said, "under the present circumstance it doesn't warrant base rate change but we have to decide as a team in ALCO (Asset Liability Committee)."
He said, "I don't think that it yet warrants other than quarter per cent change in the interest rates, which is negligible, which I think is important to adjust the cost of funds."
The central bank today increased its short-term lending and borrowing rates by 0.25 and 0.50 per cent, respectively to bring down inflation to a projected 6 per cent by March next from double-digits now.
The short-term lending rate (repo) increased to 5.75 per cent while short-term borrowing rate (reverse repo) rose to 4.50 per cent with immediate effect.
Meanwhile, Delhi Chief Minister Shiela Dikshit inaugurated 70 branches of YES Bank.
The bank recently announced its plan to open 100 more branches across the country within a year to touch the 250 branch mark.
