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Yes Bank approves early redemption of eight bonds worth Rs 1,764 cr

Yes Bank approves early redemption of eight bonds worth Rs 1,764 cr

The committee gave its nod to a proposal seeking approval from investors for early redemption of Basel II-compliant lower tier II and upper tier II bond instruments subject to necessary approvals.

The decision was taken at a meeting of the Capital Raising Committee of the lender, Yes Bank said in a regulatory filing. The decision was taken at a meeting of the Capital Raising Committee of the lender, Yes Bank said in a regulatory filing.

Private lender Yes Bank's board on Friday approved a proposal to seek nod of investors for early redemption of bonds worth Rs 1,764 crore.

The decision was taken at a meeting of the Capital Raising Committee of the lender, Yes Bank said in a regulatory filing.

The committee gave its nod to a proposal seeking approval from investors for early redemption of Basel II-compliant lower tier II and upper tier II bond instruments subject to necessary approvals, it said.

Total 8 bond issuances that were issued during June-December in 2012, are up for early redemption. These bond issuances are set to mature during 2022 and 2027. Issuers of bonds may go for early redemption of debt instruments if the current interest rates fall below the rates it pays on the bonds issued. This is a way to retire costly debt and issue fresh bonds at lower interest rate.

Yes Bank shares on Friday closed 0.36 per cent higher at Rs 13.92 on BSE.

Meanwhile, Yes Bank reported 80 per cent jump in consolidated net profit at Rs 265.76 crore for December quarter 2021-22, helped by a fall in the provisions for bad loans.

The bank's core net interest income declined 31 per cent to Rs 1,764 crore, despite a 0.25 per cent expansion in net interest margin to 2.4 per cent but limited by the loan growth being suppressed at 4 per cent.

On a standalone basis, the profit jumped 77 per cent to Rs 266.43 crore in the quarter under review.

(With PTI inputs)