Private sector lender Yes Bank plans to raise up to Rs 3,000 crore in tier-II or non-equity capital by September this year, a top official said today.
"We are targeting approximately Rs 2,500-3,000 crore of Tier-II capital by September this year," Yes Bank Managing Director and Chief Executive Rana Kapoor told reporters after the completion of the Vibrant Gujarat summit here.
He said the bank is in the process of taking approvals from shareholders for the same and the money will be raised under the new Basel-III norms.
This is a part of a larger Rs 8,000 crore capital raising programme, under which it is raising money under the tier-II, additional tier-1 and infrastructure bond routes, he said.
The bank has a Rs 2,000 crore headroom for infrastructure bond issues, he said, adding that the AT-1 is not an exciting route at present due to high interest rates of over 10 per cent.
He said even though there has been a correction in the fixed deposit interest rates, the bank wishes to continue with its higher interest paying saving account offerings due to the stickiness in deposits.
The bank is targeting to double its branches in Gujarat to 100 in the next two years, Kapoor said, stressing that the western Indian state is a key geography for the bank's business.
It has a loan book of Rs 15,000 crore in Gujarat at present, which it is targeting to grow by another Rs 7,500 crore in the next 18 months, Kapoor said.
He said the upcoming DMIC (Delhi Mumbai Industrial Corridor), which passes through the state, presents interesting lending opportunities for the bank.
