YES Bank tumbles 11% despite RBI nod to raise capital

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YES Bank tumbles 11% despite RBI nod to raise capital
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NEW DELHI: Shares of private sector lender YES Bank tumbled 11 per cent in Monday’s trade even as the company said it received approval from the Reserve Bank of India (RBI) to raise capital.

YES Bank in an exchange filing said, “it has received an acknowledgment from the Reserve Bank of India to go ahead with the proposed increase in its authorized share capital.” The bank will now seek necessary shareholders’ consent.

bank is reeling under huge exposure to stressed assets. It plans to raise Rs 800 crore from the market. In a release last week, it had said the bank has received strong interest from multiple foreign as well as domestic private equity and strategic investors for this capital raise.

At around 9.50 am, YES Bank shares were trading nearly 9 per cent lower at Rs 44.40 on BSE
Meanwhile, bank’s promoter Rana Kapoor has been reducing his stake in the bank in a gradual manner. Last week, YES Capital, owned by Kapoor, sold 1.8 per cent shareholding in the Bank. In a release, it said the proceeds will be utilized to prepay balance outstanding Non-Convertible Debentures (NCDs) of YCPL subscribed by various schemes of Franklin Templeton Asset Management.

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