YES Bank board approves raising funds up to Rs 10,000 crore

The fundraising will happen through various instruments, including equity and bonds

Private lender YES Bank on Tuesday said it plans to raise funds up to Rs 10,000 crore through various instruments, including equity and bonds, to support business growth.

The bank said in a stock exchange filing that its board gave a nod for the fundraising proposal. 

The bank will be seeking the approval from its shareholders, which in effect would result into seeking an extension on the current shareholder approval that is set to expire on February 28, 2022.

The lender's stock on Tuesday closed 2.11% higher at Rs 13.04 per share on BSE.

In March this year, the bank's shareholders had approved with a majority for a Rs 10,000-crore fund mop-up by way of equity or other securities.

Its capital adequacy ratio stood at 17.4% with common equity tier I of 11.5% as of September 30, 2021.

At time of announcing results for Q2FY22, the lender said it expects recoveries to enhance capital base in FY22 and have a relook at capital raising plans by end of FY22 or early FY23. Its advances had risen by 3.5% year-on-year basis to Rs 1.72 trillion by end of September 2021.