Yes Bank to raise Rs 200 cr tier-II capital

New-age private bank Yes Bank will raise Rs 200 crore in tier II capital this fiscal including Rs 100 crore from Asian Development Bank (ADB) next month.

"We will raise Rs 200 crore in tier II capital by March 2006," said Rana Kapoor, chief executive officer, Yes Bank. He said the bank expects to get a loan of Rs 100 crore from ADB in December to serve as tier II capital.

The rupee loan from ADB will have a tenor of up to nine years with a bullet repayment at maturity date. Bullet repayment means to pay back the loan in one go. The ADB loan will enable Yes Bank to lend more to focus sector such food and agriculture and SMEs.

Kapoor said Yes Bank will raise another Rs 100 crore maturing in seven years from institutions and other sources by the end of this fiscal.

The Mumbai-based bank, which started its operations in 2004, has a capital adequacy ratio of over 26 per cent.

The bank has made a net profit of Rs 25.5 crore in the first-half of this fiscal.