Business Today

YES Bank to raise authorised share capital to Rs 1,100 crore

YES Bank would raise the authorised share capital by increasing the equity shares to 450 crore equity shares of Rs 2 each, amounting to Rs 900 crore from the current 300 crore equity shares of Rs 2 each that total Rs 600 crore

twitter-logo BusinessToday.In        Last Updated: August 30, 2019  | 22:42 IST
YES Bank to raise authorised share capital to Rs 1,100 crore
YES Bank, country's fifth largest bank

Private sector lender YES Bank on Friday said its board has approved a proposal to increase the bank's authorised share capital to Rs 1,100 crore from Rs 800 crore. The proposal is subject to requisite approvals.

The country's fifth largest bank would raise the authorised share capital by increasing the equity shares to 450 crore equity shares of Rs 2 each, amounting to Rs 900 crore from the current 300 crore equity shares of Rs 2 each that amounts to Rs 600 crore. The preference shares would be kept constant at two crore shares of Rs 100 each aggregating to Rs 200 crore.

"The bank would proceed with seeking approval from Reserve Bank of India (RBI) for amendment in memorandum of association of the bank for increase in the authorised share capital," YES Bank said in a filing to the Bombay Stock Exchange.

The bank stated that it has already utilised the capital raising limit available under the previously approved resolution by the shareholders in its meeting held in June 2019, and keeping in mind the capital requirements, its board has approved the proposal to increase the authorised share capital.

The board has also delegated the powers to the capital raising committee of the board, with respect to the method and quantum of fundraising, including preferential allotment route, the bank said.

The board has also authorised the bank's MD & CEO Ravneet Gill to negotiate term sheets with prospective private investors.

On August 14, 2019, YES Bank raised Rs 1,930 crore in new capital through a qualified institutional placement (QIP).

Global rating agency Moody's Investors Service on Wednesday downgraded YES Bank's long-term foreign-currency issuer rating to Ba3 from Ba1 and maintained 'negative' outlook with concerns over lower than expected amount of capital raised by the bank.

Edited by Chitranjan Kumar

Also Read: Punjab National Bank to be merged with Oriental Bank and United Bank

Also Read: Canara Bank, Syndicate Bank to merge to become 4th largest public sector bank

Also Read: Union Bank, Andhra Bank, Corporation Bank to merge to become 5th largest bank PSB

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close