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Yes Bank To Proceed With Capital Raise From Carlyle, Advent

Carlyle, Advent investment proposals to proceed as planned, says Yes Bank

<div class="paragraphs"><p>(Source: Yes Bank Facebook Page)</p></div>
(Source: Yes Bank Facebook Page)

Private lender Yes Bank Ltd, on Friday, said that it will proceed with capital raises with The Carlyle Group and Advent International. Both investors are set to pick up 9.99% stake each in the bank.

In an exchange notification, Yes Bank said that it is in receipt of additional letters from the Reserve Bank of India, following which the bank will proceed with the investment proposals. The banking regulator on Nov. 30 had accorded conditional approvals to both investors, the bank had disclosed without clarifying what the conditions were.

"...the bank shall now engage with the investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective investment agreements," the bank said in the exchange notification on Friday.

In July, Yes Bank announced that Carlyle and Advent were to invest Rs 8,898 crore, i.e., $1.1 billion, to pick up 10% stakes each in the bank. The fundraise would happen through a combination of the issuance of equity shares and warrants in favour of the two investors.

The investment will be through the issuance of equity shares and share warrants, the bank had said in July.

Yes Bank will issue 369 crore equity shares at a price of Rs 13.78 per share and 256 crore share warrants at Rs 14.82 per warrant, cumulatively. Each of Carlyle Group and Advent International will get 184,80,000,000 shares of stock and 128,37,000,000 warrants.

In the quarter ended September 30, Yes Bank reported a net profit of Rs 153 crore, down 32% year-on-year. It had advances of Rs 1.92 lakh crore and a deposit base of Rs 2 lakh crore. Net interest margin for the quarter improved 20 basis points sequentially to 2.6%.

Gross non-performing asset ratio for the quarter stood at 12.9%, down 50 basis points quarter-on-quarter. Net NPA ratio too improved to 3.6%, compared with 4.2% as of June 30. The bank is also in the process of selling Rs 48,000 crore worth of bad loans to JC Flowers Asset Reconstruction Company Ltd, as part of its one-time cleanup plan.

Yes Bank had last raised Rs 15,000 crore from a clutch of investors through a follow-on public offer in July 2020, just months after the bank was put under a reconstruction process by the Reserve Bank of India in March 2020.