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YES Bank dismisses reports on 'poor' financials; says capital adequacy ratio above norms

Lender is facing a financial crunch on the back of rising non-performing assets and the exit of institutional shareholders; divergence in YES Bank's total NPAs stood at Rs 2,299 crore for FY19

twitter-logoBusinessToday.In | January 15, 2020 | Updated 22:00 IST
YES Bank dismisses reports on 'poor' financials; says capital adequacy ratio above norms
YES Bank share price recovered from early losses and gained over 6 per cent on Wednesday

YES Bank has junked reports about its poor financial condition, saying people should not pay heed to unfounded reports. In a BSE release on Wednesday, the private lender said it wanted to assure all its customers on the lender's liquidity and stability.

YES Bank said its overall Capital Adequacy Ratio was comfortably above regulatory requirements and that the bank was making all the efforts to make it more financially stable.

"...therefore, pay no heed to these unfounded reports," it added.

YES Bank's statement comes amid reports on poor health of its financials. The lender is facing a financial crunch on the back of rising non-performing assets and the exit of institutional shareholders. Divergence in Yes Bank's total NPAs stood at Rs 2,299 crore for FY19. The bank is now aiming to infuse more capital to stay afloat.

Also read: YES Bank independent director targets CEO Ravneet Gill, top management in resignation letter

The lender in its board meeting held on January 10 approved raising of funds of up to Rs 10,000 crore in one or more tranches through qualified institutional placement (QIP) or any other private placement of equity or debt.

It has also scheduled an extraordinary general meeting of its shareholders on February 7 to discuss fundraising for Rs 10,000 crore and to authorise an expansion in its authorised capital to Rs 1,100 crore from Rs 800 crore earlier.

YES Bank share price recovered from early losses and gained over 6 per cent on Wednesday after the lender said it has acquired 30 per cent shareholding in Reliance Power's subsidiary Rosa Power Supply Company through the invocation of pledged shares.

Edited by Manoj Sharma

Also read: YES Bank share price rises 6.6% on acquiring stake in Reliance Power's arm

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