Yes Bank gets shareholder nod to raise Rs 10,000 crore

Mumbai: Shareholders of Yes Bank on Friday approved raising the private-sector lender’s authorised capital to Rs 1,100 crore at an extraordinary general meeting held in Mumbai, the bank said in a customary filing with local exchanges.

A special resolution to allow capital raising through issuance of equity shares or other convertible securities of Rs 10,000 crore was also passed at the meeting.

The move comes even as the Mumbai-based bank is seeking to raise funds to enhance its growth capital. The funds would also buttress Yes Bank’s core capital, which is already above the threshold prescribed by the regulator.

Earlier this week, ET reported that Yes Bank picked Cantor Fitzgerald, led by former Deutsche Bank global co-CEO Anshu Jain, and local investment banks IDFC Securities and Ambit Capital to raise funds that would help the lender expand its loan book. Yes Bank plans to raise up to $2 billion to shore up its capital base.

Shareholders met to discuss increasing the lender’s authorised share capital and to alter Clause V of the Memorandum of Association.

Yes Bank shares climbed 0.4% to Rs 38.70 at the Bombay Stock Exchange on Friday.