Yes Bank announced plans to raise up to ₹16,000 crore through a combination of equity and debt, according to a regulatory filing on Monday. The private sector lender aims to raise up to ₹7,500 crore via equity issuance and up to ₹8,500 crore through debt securities. The board approved these proposals, which are subject to shareholder and regulatory approvals, as part of the bank's capital-raising strategy.
The bank's board sanctioned the issuance of eligible equity securities through various permissible methods, ensuring that the total equity raised does not exceed ₹7,500 crore and the dilution remains below 10%. Additionally, the board approved raising funds by issuing eligible debt securities in Indian or foreign currency in one or more tranches, capped at ₹8,500 crore. These measures are intended to strengthen the bank's capital base and support its growth plans.
This capital-raising move comes as Yes Bank's total capital adequacy ratio stood at 15.3% as of March 31, down from 15.6% a year earlier. The bank's plan to raise funds through both equity and debt aligns with broader trends in the Indian banking sector, where lenders are bolstering capital to meet regulatory requirements and expand lending. The combined ₹16,000 crore target marks a significant effort to enhance financial stability and operational capacity.
Yes Bank's board approval and regulatory filing mark the initial steps in this fundraise, with shareholder approval pending. The bank has not disclosed a timeline for the completion of the equity and debt issuances, but the move underscores its focus on capital adequacy and growth.