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FPO strengthens Yes Bank's capital, reduces risks for creditors: Moody's

The equity raise reflects its renewed access to external market funds. This, in turn, shows the bank's improving financial strength and will help support depositor confidence, Moody's said

YES bank
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Also, the bank's Basel III-compliant additional Tier-1 securities amounting to Rs 8,415 crore were written down in full. On March 18, 2020 the RBI lifted the moratorium on Yes Bank.

Abhijit Lele Mumbai
Rating agency Moody’s today said the fresh equity capital injection of about Rs 15,000 crore ($2 billion) is credit-positive for Yes Bank as it strengthens the lender’s capitalisation and loss-absorbing buffers. It will also reduce default risk for its creditors.

On July 17, Yes Bank announced the closure of a Rs 15,000 crore equity capital raise.

The successful equity raise reflects Yes Bank's regained access to external market funds. This, in turn, shows the bank’s improving financial strength and will help support depositor confidence, Moody’s said in a statement.

The new capital from the equity raise will nearly double the bank's Common Equity

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First Published: Jul 21 2020 | 7:01 PM IST

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