Yes Bank drops as shareholders approve fund raising

Yes Bank lost 1.46% to Rs 495.75 at 11:05 IST on BSE after the bank at its ninth AGM held on Saturday, 8 June 2013, approved the resolution to raise $500 million incremental capital or its Indian rupee equivalent during the current year.

The announcement was made during trading hours today, 10 June 2013.

Meanwhile, the S&P BSE Sensex was up 40.95 points or 0.21% at 19,470.18.

On BSE, 72,000 shares were traded in the counter as against average daily volume of 1.77 lakh shares in the past two weeks.

The stock hit a high of Rs 503.10 and a low of Rs 495 so far during the day.

Mr. Rana Kapoor, MD & CEO of Yes Bank said that the bank would aim to raise the capital during the current year, potentially through GDRs, in combination with a QIP and domestic institutional investors (DII), in order to ensure fullest and widest participation of all investor classes. This would be in accordance with the bank's financial strategy to broad base and diversity its capital sources across all investor classes and deepen the shareholder register, Yes Bank said.

Meanwhile, the battle between the two promoters of Yes Bank, the Kapur family and Rana Kapoor, the current MD of Yes Bank, continued at the bank's annual general meeting (AGM) on Saturday, 8 June 2013, with the Kapur family and a section of shareholders opposing the resolution to elect three directors viz. Mr. Diwan Arun Nanda, Mr. Ravish Chopra and Mr. M. R. Srinivasan, proposed by the present management led by Rana Kapoor.

Yes Bank said that three resolutions pertaining to the appointment of Mr. Diwan Arun Nanda, Mr. Ravish Chopra and Mr. M. R. Srinivasan, whose appointments were earlier approved by the board of directors of the bank, were put to poll upon the request of a shareholder. Overall 57% of the total shareholder ownership votes were polled and the general body of the shareholders passed all three resolutions with an overwhelming majority of about 80%, and selected all the three aforesaid directors, Yes Bank said.

Madhu Kapur, widow of one of the bank's co-founders, Ashok Kapur, had wanted their daughter to be elected to the bank's board, but this was declined by the board. A petition to stay the AGM was turned down by the Bombay High Court.

Yes Bank's net profit jumped 33.24% to Rs 362.15 crore on 30.01% growth in total income to Rs 2667.03 crore in Q4 March 2013 over Q4 March 2012.

Yes Bank is one of the leading private sector banks. The bank's total branch network stood at 430 as on 31 March 2013. The bank has 951 ATMs as at 31 March 2013.

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