Covid-19 provisions may consume maximum 1% capital, says YES Bank CEO

The private lender is in the capital market to raise equity worth Rs 15,000 cr via an FPO in the Rs 12-13 price band

YES Bank on Monday said the provisioning undertaken due to the pandemic may consume at most 1 per cent of its capital. The lender will tap the capital markets to raise Rs 15,000 crore through a follow-on public offer (FPO).  

Prashant Kumar, MD and CEO, said proceeds from the FPO will improve its common equity tier-I (CET-1) ration by 5 per cent. This will provide a buffer (to absorb shocks) and capital for supporting growth over the next two years, Kumar told the media. Shares closed 13.3 per cent down at Rs 22.1 apiece, on the BSE. 

According to the draft prospectus,