To raise funds in one or more tranches
The newly-constituted board of Yes Bank held its first meeting on Thursday, approving additional fund raising of ₹5,000 crore.
“The board, at its meeting… has approved, subject to receipt of requisite approvals, raising funds for an additional amount aggregating up to ₹5,000 crore in one or more tranches,” the bank said in a communication to the stock exchanges.
The State Bank of India and other banks and financial institutions have already infused ₹10,000 crore into the bank after a scheme of reconstruction was announced by the government. The bank was put under moratorium earlier this month following a deterioration in its financial health and later, the government announced a reconstruction scheme to aid the lender’s revival. Prashant Kumar, who was a deputy managing director, SBI, was appointed as the administrator of the bank by the Reserve Bank of India after the moratorium was imposed. He later took charge as the MD & CEO of the private lender.
Yes Bank reported a ₹18,564-crore loss for the third quarter, with gross non-performing assets jumping to ₹40,709 crore, which was 18.87% of gross advance and capital adequacy ratio depleting to 4.1% as on December 31, 2019, way below the minimum regulatory requirement.
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